Canadian cheques

[together2love 0]

Cdn banks do money orders but again (CIBC), if you have a CIBC money order and try to deposit it in a US bank (for me it's also Washington Mutual), they'll hold funds for 30 days. I'm not trying to be difficult here but I just want you to know what the real problems you will have to deal with in the situation. I know it's retarded but I didn't make those stupid banking rules! The US bank takes 30 days to process your money order and if you're in a big hurry for the money, you'll be in trouble.

Western union might work but dont they charge an arm and a leg for fees?

See, I have also deposted money orders at Washinton Mutual with no hold and no problems. However, the money orders came from a Canadian bank that had already converted the CA$ to US$ so the money order ended up being in US$ - so maybe there is where the slip up may be.

[misa 2]

Misa,

It does not matter whether your clients paid you in US or Canadian currency. What matters is, when you bill your client and where you are working. If you were working in Canada, then that is part of your Canadian income. If you're working in the US for your Canadian clients, then you have earned US income (even though your client is in Canada)

So to answer your question, when you reside in the US, you can still continue to bill your Canadian clients. Those fees that you bill your clients (in Canada or the US) will be considered to be US income. You dont have to worry about where they deposit the money (US or Cdn bank account). When you file your taxes, you will report what you have earned in the US into your 2007 US tax return. I'm also assuming that you will be filing your 'final' return in Canada for the 2006 taxation year.

Let me know if you still have questions or send me a private message.

Thanks.

This clears things up a lot, thank you!

My main concern was having to file both Canada and US taxes (aside from the "final" return).

I guess for now I can ask my sister to deposit for me into my BMO account here until I do find a bank that will accept my cheques without problems. I'll also check with BMO about a US currency account and will also ask my client about changing my rate to reflect USD.

Re: Money orders. Money orders are out of the question. My client (a corporation) has a Accounts Payable department that issues me my invoice payments. I can't ask them to give me a money order or do Paypal.

You've heard of money orders?

Corporate client with an accounts payable department that issues cheques only.

[Cassie 8]

Yeah, that's the thing. I always bought stuff from like book clubs and ####### with Canadian cheques and I've marked "US Funds" on it and never was asked to send another one.

So Cassie, your US bank just plain sucks huh?

Which banks cause the LEAST problems? I will be in VA and probably open a Wachovia account. Or should I go with Bank of America? Gah, what a hassle!

Or maybe I'll just suck it up and file taxes both in Canada and the U.S...

In general -- no, they've been fantastic to us with helping us to get various documents in order for the immigration process and with banking in general. But when it comes to cashing Canadian cheques, it seems to be a big hassle.

[vanee 13]

Misa,

It does not matter whether your clients paid you in US or Canadian currency. What matters is, when you bill your client and where you are working. If you were working in Canada, then that is part of your Canadian income. If you're working in the US for your Canadian clients, then you have earned US income (even though your client is in Canada)

So to answer your question, when you reside in the US, you can still continue to bill your Canadian clients. Those fees that you bill your clients (in Canada or the US) will be considered to be US income. You dont have to worry about where they deposit the money (US or Cdn bank account). When you file your taxes, you will report what you have earned in the US into your 2007 US tax return. I'm also assuming that you will be filing your 'final' return in Canada for the 2006 taxation year.

That makes more sense to me than having to pay income tax in both Canada and the US for the same income.

I'm still in Canada, self-employed, and I have clients in various countries. Most of my income is in USD. RBC in Canada is affiliated with RBC Centura, so I have these accounts:

- RBC savings and chequing: CAD

- RBC checking: USD

- RBC Centura checking: USD

My USD income goes into the Centura account if it comes via PayPal and to the RBC USD checking account if I receive it by cheque. I transfer it online to my CAD account when the exchange rate is good. My bank doesn't have a problem depositing USD checks for me in person, maybe in part because they're used to me doing that.

Since I have income coming to me through both countries and I pay taxes only in Canada at this point, I expect that the reverse will be true once I'm in the US permanently. I'm planning to deposit my CAD income into my RBC CAD account (by mailing the cheques to RBC) and then either leaving it there for CAD expenses or transferring it online to my Centura account.

If anyone else is looking for a way to manage CAD and USD, I recommend RBC/RBC Centura.

[Eli 0]

Just a note - Bank of America is affiliated with ScotiaBank in Canada. I don't know if you have a ScotiaBank in the area you are from in Canada, but essentially how it works is that you can pull money from your Scotia account, using your Scotia card (debit card), from any Bank of America ATM Machine at no charge. So if all else fails, you could open an account at a ScotiaBank if possible, have your cheques deposited there, then withdraw the money from a Bank of America ATM and then deposit it into a Bank of America account you open in the USA. It sounds complicated it writing, but it is the easiest thing for me as my parents send me money to help pay for college. They deposit money in CAD funds at my Scotiabank bank home in Canada, I withdraw the money in USD funds from an ATM at the Bank of America, then walk over to a teller and deposit it into my American bank account. No fees, no holds, no hassle.

-Eli-

[Eli 0]

I also forgot to mention, but my last Canadian paycheque was mailed to me in the US, and I deposited it into my Bank of America account when I first opened the account. They had no problems doing that, and there was no fee/no hold, but I was also dealing with a higher up at the time because I was opening the account. I have not cashed a Canadian cheque since, so I cannot promise you could do that at a teller at Bank of America, but to date I have found them to be very accommodating with everything else I have ever needed in terms of immigration, etc. I would try calling them.

-Eli-

Edited March 8, 2007 by Eli

[misa 2]

Thanks for the info guys!

[misa 2]

FYI, I got this back from BoA. Geesh... I'm just going to open a BMO US currency chequing account and then transfer that to my US account (probably Wachovia) using Custom House. What a hassle.

Bank of America banking centers can convert a check in Canadian Dollars and deposit it into your Bank of America checking or savings account.

Your banking center will make the decision to accept the check for immediate credit or to send the check for collection. Among the factors considered in this decision are your account relationship with Bank of America, including how long the account has been open, the activity on the account, and the average balance, and the amount of the check.

If your check is accepted for immediate credit, there is no fee. If thecheck is sent on collection, there is a $40 collection fee and can take between 4-6 weeks for payment.

Please visit your banking center for complete information regarding the acceptance of foreign checks, current rates of exchange and associated fees.

bankofamerica.com/foreigncurrency