Savings account in Canada

[Lupigirl 67]

Hi,

 

I have a little savings account in Canada which I don't really care to transfer at this point, due to the poor exchange rate.  It earns me around $20.00 Canadian per month.

 

My questions are:

 

Will I need to report that bank account to the IRS?

Will I need to pay taxes on interest earned, either in Canada, the U.S. or both?  

How much can I transfer per year without being penalized?

 

Basically, I don't really need that money right now, but I'm completely clueless as to any possible disadvantages to retaining a savings account in a foreign country while (hopefully) residing as a LPR in the U.S.

 

 

[Going through 5,671]

Hi there.  This website helped me when I became a non-resident of Canada (note: becoming a non-resident does not mean you are giving up your citizenship of Canada).

 

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html#mgrnt

[Lupigirl 67]

19 minutes ago, Going through said:

Hi there.  This website helped me when I became a non-resident of Canada (note: becoming a non-resident does not mean you are giving up your citizenship of Canada).

 

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html#mgrnt

Thank you;  that's very helpful.

 

It's a bit confusing because I'm adjusting status from a tourist visa, so I never intended to stay here permanently the last time I left Canada.  I recently received a GST payment from the CRA and when I called to tell them I probably shouldn't have recieved it, the woman I spoke with told me they still consider me "temporarily absent" since I haven't received any immigration benefits here yet. She told me to call back when I get my EAD.  

 

I really hate this whole being in limbo thing.

[Going through 5,671]

52 minutes ago, Lupigirl said:

Thank you;  that's very helpful.

 

It's a bit confusing because I'm adjusting status from a tourist visa, so I never intended to stay here permanently the last time I left Canada.  I recently received a GST payment from the CRA and when I called to tell them I probably shouldn't have recieved it, the woman I spoke with told me they still consider me "temporarily absent" since I haven't received any immigration benefits here yet. She told me to call back when I get my EAD.  

 

I really hate this whole being in limbo thing.

I adjusted status the same way, I completely understand.

When I did it back in 2005 I requested a letter from them stating I was a "non-resident for tax purposes" which stopped the GST cheques immediately.  Along with my ID, I sent them a copy of the EAD and i-485 receipt letters along with my Canadian ID copies which (to CRA) stated my intent to establish residency outside of Canada, and showing that it was under processing subject to approval.   Maybe call back and ask if you can send them that?  

[Lupigirl 67]

2 minutes ago, Going through said:

I adjusted status the same way, I completely understand.

When I did it back in 2005 I requested a letter from them stating I was a "non-resident for tax purposes" which stopped the GST cheques immediately.  Along with my ID, I sent them a copy of the EAD and i-485 receipt letters along with my Canadian ID copies which (to CRA) stated my intent to establish residency outside of Canada, and showing that it was under processing subject to approval.   Maybe call back and ask if you can send them that?  

That's exactly what I'll do.