Income tax and investments

[Dusy 0]

Hi

I'm a Canadian citizen living in the US since 2006 (permanent resident since 2008). I have Canadian investments and when I moved, I left them there. Every year, I have received an NR4 and this year a T5008. I was doing some research today and saw on a website, that I should have filled out Schedule B on the 1040 (questions 7 & 8). Also, something about FinCEN form 114 (FBAR) and form 3520. This wasn’t a government website so I don’t know if it’s true. Is this something that should have been done all these years? Or is this only for US Citizens? Any answers would be greatly appreciated. Thank you.

Sylvie

[Nich-Nick 3,354]

You are a US taxpayer, so it applies to you. If you earn investment income like interest or dividends, the earnings each year should be reported on your US taxes. It is not the whole balance, but anything you earned worldwide during the tax year. I haven"t read the specific tax treaty with Canada, but most say report the income to the country where you reside. So it is not income reported to Canada, but rather to the US. Schedule B is where you typically list that.

The FinCen or FBAR document is a reporting of foreign accounts, as in the balance in the account(s). It is not a tax form filed with the return. It is a report to the US Treasury due at the end of June each year. Google "IRS FBAR " and you will like find the IRS.gov hit near the top of the list.

Not knowing your exact details or anything about treaties with Canada, this reply may or may not be your case but is meant to give you general info to examine to see what applies to you.

Edited March 22, 2015 by Nich-Nick

[Dusy 0]

You are a US taxpayer, so it applies to you. If you earn investment income like interest or dividends, the earnings each year should be reported on your US taxes. It is not the whole balance, but anything you earned worldwide during the tax year. I haven"t read the specific tax treaty with Canada, but most say report the income to the country where you reside. So it is not income reported to Canada, but rather to the US. Schedule B is where you typically list that.

The FinCen or FBAR document is a reporting of foreign accounts, as in the balance in the account(s). It is not a tax form filed with the return. It is a report to the US Treasury due at the end of June each year. Google "IRS FBAR " and you will like find the IRS.gov hit near the top of the list.

Not knowing your exact details or anything about treaties with Canada, this reply may or may not be your case but is meant to give you general info to examine to see what applies to you.

Thank you very much for your answer, Nich-Nick. The amount that is on the NR4 is put on the return. I had no idea of any of the other forms that needed to be filled out. Evidently, the accountant didn't know either. I will read up on it further. Thanks again.

[Nich-Nick 3,354]

Thank you very much for your answer, Nich-Nick. The amount that is on the NR4 is put on the return. I had no idea of any of the other forms that needed to be filled out. Evidently, the accountant didn't know either. I will read up on it further. Thanks again.

I am not familiar with Canadian form numbers so don't know what they are reporting to you. This looks helpful in easy to understand language https://ttlc.intuit.com/questions/1930257-how-do-i-treat-the-funds-reported-on-the-nr4-form-for-my-us-tax-return

And many answers on the T5008 https://ttlc.intuit.com/search?utf8=✓&search_category=All&q=T5008&button=