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----- Subject: US tax liabilities if Permanent Canadian Resident
Dear Mr Ingram..
I am a retired US citizen and was married to a Canadian citizen last August. We both have residences in our respective countries. We are interested in the possibility of me relocating to Canada on a permanent basis. I have a few questions I am looking for answers too. Please offer some advice.
1. I would like to know what tax implications I would be responsible for. Would my current pension, bank interest, and dividends be taxed in both countries as earned income?? (double taxation) Can I leave my retirement plan and payment schedule in a US institution?
2. I am not receiving my social security benefit or medicare at this time. When I do reach the age for that benefit would I still be entitled to it if I reside outside of the US??
3. In my situation, what is the best way to apply for a Permanent Canadian Residence Card. While I am in the US or move to Canada with my spouse and then apply?
4. How long do we need to be married before I can apply for either a temporary or permanent residence card?
Thank You for any assistance you might be able to offer. T
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david ingram replies:
1. If you move to Canada, your interest, pensions, and dividends will be taxable in both countries. Your social Security will only be taxable in Canada. You can leave everything in US institutions but it will still be taxable in Canada as above. The US will get 10% tax on interest, 15% tax on dividends and 15% tax on a company penion or annuity and no tax on the Social Security. You will pay tax to Canada at Canada's rates which will likely be higher and claim a foreign tax credit against Canadian taxes. It will not be double taxation. And, although there is no tax in the USA on the Social Security, Canada will tax you on 85% of the amount.
Please note as well that you will not pay any tax to Canada on about the first $13,000 of income (Canadian Funds)
2. You can collect you r Social Security in Canada. You can still register for Medicare and although it would cover you on a trip to Canada, it will not cover you if you live in Canda for routine medical bills. However, you would be covered by your provincial health plan which is every bit as good as medicare.
3. You are likely better off to apply from within Canada. Pay attention to the word "likely:"
4. About a minute but in practical terms a couple of days.
Following is most of what you have to go through to immigrate to Canada as the spouse of a Canadian.
You can start the process by going to:
1. http://www.cic.gc.ca/english/pdf/kits/guides/3910e.pdf
This is a guide for sponsoring a US citizen spouse into Canada.
Publication 3910E
2. http://www.cic.gc.ca/english/pdf/kits/forms/IMM1344EA.pdf
This is the application form to sponsor - form IMM-1344A
3. http://www.cic.gc.ca/english/pdf/kits/forms/IMM1344EB.pdf
This is the sponsorship agreement - Form IMM-1344B
4. http://www.cic.gc.ca/english/pdf/kits/forms/IMM5481E.PDF
This is the Sponsorship Evaluation Form IMM-5481
5. http://www.cic.gc.ca/english/pdf/kits/forms/IMM5409E.PDF
This is a statutory declaration of a common-law marriage - FORM IMM-5409
6. http://www.cic.gc.ca/english/pdf/kits/forms/IMM5540E.PDF
This is the Sponsor Questionnaire - Form IMM-5540
7. http://www.cic.gc.ca/english/pdf/kits/forms/IMM5540E.PDF
This is an authority to release information - FORM IMM-5540
8. http://www.cic.gc.ca/english/pdf/kits/forms/IMM5491E.PDF
This is a document Checklist - Form IMM-5491
9. http://www.canadapost.ca/tools/docp/CIC/bin/hpm-e.asp
This is where you order your official receipt
10. http://www.cic.gc.ca/english/pdf/kits/forms/imm0008egen.pdf
This is your actual Application for Permanet Residence - FORM IMM-0008GEN
11. http://www.cic.gc.ca/english/pdf/kits/forms/imm0008_1e.pdf
This is your Background Declaration - FORM IMM-008_1
12. http://www.cic.gc.ca/english/pdf/kits/forms/IMM5406E.PDF
This is your additional family information - FORM IMM-5406
13. http://www.cic.gc.ca/english/pdf/kits/forms/IMM5490E.PDF
This is your spouse or conjugal partner questionnaire -= FORM IMM-5490
14. The Above PLUS a police report from your local police station (See the guide for details) applies to those being sponsored from the UNITED STATES. There is a separate brochure for every country. If you are reading this and are from any other country (Australia, Brunei, Austria, Venezuela, etc) goto
15. http://www.cic.gc.ca/english/applications/fc.html for other country guides.
Hope this helps
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321
[email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
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