To naturalize or not to naturalize.

[kc247 22]

So, even if we live in Canada & have made no income in the US I would still have to file US taxes?? When my husband lived in Canada for 2 years for the year he made no income he didn't file any taxes :S

[chiggins82 88]

From the little I read on this, USC can be dual citizen, but the US does not encourage it because if you say went to the other country, and they went the war the US may not be able to help you.... (Paraphrasing from http://travel.state.gov/content/travel/english/legal-considerations/us-citizenship-laws-policies/citizenship-and-dual-nationality/dual-nationality.html)

It seems like they used to not allow, but now they do not enforce anything if a USC becomes a dual citizen of another country and same for those that take the oath in the US... they will not actually force you to lose your other citizenship..

This is an interesting article from the Globe and Mail: http://www.theglobeandmail.com/globe-investor/personal-finance/retirement-rrsps/dual-citizen-its-best-not-to-ignore-the-tax-rules/article16639806/

This makes me much more hesitant on becoming a dual now! Really, in the end we just want to be able to live our lives with the option to move back to Canada one day with the least amount of paperwork and hassle....

[NikLR 13,232]

So, even if we live in Canada & have made no income in the US I would still have to file US taxes?? When my husband lived in Canada for 2 years for the year he made no income he didn't file any taxes :S

If he made no income in either country he doesnt. However if he worked in Canada and made over the threshold required to file in the USA he was supposed to file US taxes.

[carocaro 22]

I became dual right on schedule so that we didn't have to worry about the USCIS ever again. I will forever hold dual citizenship as a Canadian.

As for taxes? I had to file here in the USA from year one and also do in Canada with accounts in that country. However, I am not taxed in both countries -- but I do clearly declare both.

[Nich-Nick 3,354]

This is an interesting article from the Globe and Mail: http://www.theglobeandmail.com/globe-investor/personal-finance/retirement-rrsps/dual-citizen-its-best-not-to-ignore-the-tax-rules/article16639806/

This makes me much more hesitant on becoming a dual now! Really, in the end we just want to be able to live our lives with the option to move back to Canada one day with the least amount of paperwork and hassle....

I read the mentioned article and it is a bit alarmist. It does say if you make under $200,000 in Canada as a USC there is no tax to pay the US. Many of us don't have that high income problem to worry about. The same is true about the estate tax discussed earlier. I don't have over 5 million. Rich people problems.

The forms mentioned in the article--FBAR and FATCA are required right now if you live in the US as an LPR and file tax returns and meet the requirements of money abroad. We file the FBAR ($10,000 threshold) and FATCA ($100,000 threshold) each year for UK accounts. No tax is charged. They are informational reports. I don't pay $500 to have my taxes done. The $20 TurboTax software I bought at Target does it all. It pulls in the previous report so little to do if no new accounts.

Edited August 25, 2014 by Nich-Nick

[warlord 73]

Remember there is a tax thing between the US and Canada so that you will never be double taxed at all. You just need to report your earnings. If you do get something like say an inheritance or lottery, then that's when you might have to pay tax in the US because Canada does not tax those types of things...

[Nich-Nick 3,354]

The US does not tax money, stocks, properties you receive in inheritance. It does tax the interest or gains they earn from the day they become your money going forward. Inherit $10k and put it in the bank. At the end of the year it has earned $10 in interest. The $10 is your income and is taxable. Sell a home worth $100k when you inherited it for $125k. The $25k gain is your income.

Gambling winnings are taxable.

Edited August 26, 2014 by Nich-Nick

[chiggins82 88]

I read the mentioned article and it is a bit alarmist. It does say if you make under $200,000 in Canada as a USC there is no tax to pay the US. Many of us don't have that high income problem to worry about. The same is true about the estate tax discussed earlier. I don't have over 5 million. Rich people problems.

The forms mentioned in the article--FBAR and FATCA are required right now if you live in the US as an LPR and file tax returns and meet the requirements of money abroad. We file the FBAR ($10,000 threshold) and FATCA ($100,000 threshold) each year for UK accounts. No tax is charged. They are informational reports. I don't pay $500 to have my taxes done. The $20 TurboTax software I bought at Target does it all. It pulls in the previous report so little to do if no new accounts.

I am the same as you, I have never hired someone to do my taxes, they are just not complicated enough to merit the cost. I agree that this is a problem a lot of people would not have to deal with based on the minimum earnings. I think this article I posted is more for the wealthy Canadian snow birds that live their winters in the US. It does make me realize that I know very little about this side of moving to the US..

But the main reason why I am looking to naturalize is that if we decided to move to Canada in 5-10 years I would not want to have to go through all the visa mess again if we ever wanted to come back to the US. I guess even though it is unlikely anything would happen, I think it would make me feel more secure if I was a citizen and not a PR.

[Nich-Nick 3,354]

Yep, I know of several on here I followed their struggle to get the visa. Example Glyn and Cathy--hubby couldn't stand it in the US and gave up even though already eligible to naturalize. So then the time and fees to get Cathy's visa to move overseas, not to mention moving expenses. After being abroad, he wants to move back to the US so they are in the CR1 visa game all over from scratch.

[gad33 47]

Remember there is a tax thing between the US and Canada so that you will never be double taxed at all. You just need to report your earnings. If you do get something like say an inheritance or lottery, then that's when you might have to pay tax in the US because Canada does not tax those types of things...

this isn't true. it depends on earnings and investments. There is a foreign earnings limit which changes each/most years. And then it depends on whether you itemize or not.

You can't make a sweeping statement that you will never be double taxed as it may be true for most but not all people.

Yep, I know of several on here I followed their struggle to get the visa. Example Glyn and Cathy--hubby couldn't stand it in the US and gave up even though already eligible to naturalize. So then the time and fees to get Cathy's visa to move overseas, not to mention moving expenses. After being abroad, he wants to move back to the US so they are in the CR1 visa game all over from scratch.

I've been through the process twice and a lot more paperwork was required the second time around.