Closing my Canadian bank account/GST Direct Deposit/Filing taxes

[Klee 6]

Hi everyone,

I'm feeling a bit overwhelmed and just need a bit of guidance as to what I should do. Moved to the US on May 9th, 2017 with my K-1 visa and got married on May 31, 2017. I sent off my AOS package on June 9th and am now waiting for EAD and AP. My husband and I just opened a joint account here in the US and I'm trying to figure out a way to transfer my money and what I should do with my Canadian bank account. I am with Scotiabank and only have $12000 Canadian to transfer (I was a student and working part time before I moved). First question is, how have other users transferred their Canadian funds to the US. I spoke with my bank before leaving and was told that I could wire the money if I gave them a call and faxed over some information, but I'm now sure this is the best way. I've also just read about transferwire.com...has anyone had success with this? I've just been using my Canadian credit card when I've needed to spend money.

Next, should I wait to fully close my Canadian bank account? In July the government direct deposited my GST cheque into my back account, but after reading through visajourney, I'm not sure I was even supposed to receive this...I plan to call about the GST/HST on Tuesday since they are closed for the long weekend. I never called to change my address or anything like that with the Canadian government, I have no idea what number to even call about this. Was this something I was supposed to have done? I also haven't informed them of my marriage or name change...

Lastly, I worked from January 2017 to the end of April 2017 before I left. I know I will have to file taxes in Canada. How does this work now that I am married as far as filing in Canada? My uncle has always done my taxes for me so I just really have no idea. If I wasn't supposed to receive the GST in July, would they take this out of my tax refund for 2017? I'm also wondering if I should leave my bank account in Canada open long enough to get my tax refund. My husband and I would also have to file jointly here in the US, correct?

Thank you!

TLDR: how should I transfer my remaining Canadian funds? Was I supposed to have already contacted the Canadian government about my address change, name change, and marriage? Am I not supposed to get GST/HST for the rest of this year since I am now in the US? How does filing Canadian taxes work now that I am married? Should I keep my Canadian bank account open until then?

[pajobra 1,395]

6 hours ago, Klee said:

Hi everyone,

I'm feeling a bit overwhelmed and just need a bit of guidance as to what I should do. Moved to the US on May 9th, 2017 with my K-1 visa and got married on May 31, 2017. I sent off my AOS package on June 9th and am now waiting for EAD and AP. My husband and I just opened a joint account here in the US and I'm trying to figure out a way to transfer my money and what I should do with my Canadian bank account. I am with Scotiabank and only have $12000 Canadian to transfer (I was a student and working part time before I moved). First question is, how have other users transferred their Canadian funds to the US. I spoke with my bank before leaving and was told that I could wire the money if I gave them a call and faxed over some information, but I'm now sure this is the best way. I've also just read about transferwire.com...has anyone had success with this? I've just been using my Canadian credit card when I've needed to spend money.

Next, should I wait to fully close my Canadian bank account? In July the government direct deposited my GST cheque into my back account, but after reading through visajourney, I'm not sure I was even supposed to receive this...I plan to call about the GST/HST on Tuesday since they are closed for the long weekend. I never called to change my address or anything like that with the Canadian government, I have no idea what number to even call about this. Was this something I was supposed to have done? I also haven't informed them of my marriage or name change...

Lastly, I worked from January 2017 to the end of April 2017 before I left. I know I will have to file taxes in Canada. How does this work now that I am married as far as filing in Canada? My uncle has always done my taxes for me so I just really have no idea. If I wasn't supposed to receive the GST in July, would they take this out of my tax refund for 2017? I'm also wondering if I should leave my bank account in Canada open long enough to get my tax refund. My husband and I would also have to file jointly here in the US, correct?

Thank you!

TLDR: how should I transfer my remaining Canadian funds? Was I supposed to have already contacted the Canadian government about my address change, name change, and marriage? Am I not supposed to get GST/HST for the rest of this year since I am now in the US? How does filing Canadian taxes work now that I am married? Should I keep my Canadian bank account open until then?

I would expect you would get your gst from July to July next year as that is from the 2016 taxes.  You still have taxes to do next year for 2017 because you lived in Canada and worked part of the year. You would likely get a little gst from that too. I wouldn't close the account yet. I plan on keeping mine open. I have had it since I was a kid. 

 

As for transfering ring funds I am not sure. 

[NikLR 13,227]

You aren't entitled to GST/HST rebates once you are no longer a resident of Canada. They will demand you pay that back from the date you entered the USA.  While you're in limbo here, they consider you a non-resident from that point.  Changing your address won't stop them from sending you cheques (trust me, I tried!!)  Send that money back, call them and make sure it is cancelled.  If you cash the cheques, keep them in your Canadian account so you can easily pay it back next year. 

 

Before I left Canada I opened an RBC Canada and RBC USA bank accounts (TD also has this option) to easily move money back and forth. You didn't do this so I suggest a couple of wire transfers but leave your account open up there with a little bit of money (not over 10k) just so you can get that tax return (which WILL be less than you think it will be.)  While 12k may not seem a lot to you (it can go very fast though) you need to declare anything over 10k and on your US taxes you have to file a special form if you have RRSPs or savings (or property) in Canada when tax season comes due. 

 

You are supposed to inform the Canadian government when you live in Canada of your change of status within 30 days.  I'm not particularly sure it matters when you aren't living or a resident of Canada.  

 

 

[LittleLeaf 38]

I've been looking at all this all August, since I just moved on Friday (everything landed in one piece, yay!).

As far as the money goes for anything below 5k paypal is a great option with a low fee (2.5%). Both parties just need to have an account, or you can create one account attached to your American info and one to your Canadian (sending money to yourself). For larger amounts though, a wire usually is best (about 15-25 bucks cost from the bank sending and the bank recieving and will take a two or three business days). I have used bitcoin transfers in the past successfully, but it's a volatile market and requires some learning. https://www.quora.com/What-is-the-cheapest-way-to-transfer-funds-from-US-to-Canada has some good info on some of the different services out there and how transferring works. 

I'd also recommend leaving your Canadian account open. It's helpful while still settling Canadian taxes, and to leave any RRSPs as is (that way you don't get taxed cashing them out and then setting them up in the US). A lot of the banks have an almost no fee account too. And hey, if you ever return to Canada it'll be waiting for you.

 

 As for your government credits, if you do not cancel your GST/Child benefits once you leave the country you will be asked to pay them back during tax season. So it is best to get that taken care of asap. From other threads I've read it's tough to do (sometimes they'll still direct deposit it even if you've cancelled), but just stay on top of it. The number I was given by service Canada was 1-800-959-5525.

If you log into your services Canada account here:https://www.canada.ca/en/employment-social-development/services/my-account.html 

you can change your address to your US one which should update for both them and the CRA, that way you'll still get any tax notices etc. 

 

The name change is up to you, and all you should really need to do is send a copy of your marriage certificate to update it. Your passport may be the only thing that's a little more involved, I haven't looked into it. Things should be fine if they remain in your maiden name too (as far as I know).

So many things to take care of. >.<

[Klee 6]

On 9/3/2017 at 7:49 PM, NikLR said:

You aren't entitled to GST/HST rebates once you are no longer a resident of Canada. They will demand you pay that back from the date you entered the USA.  While you're in limbo here, they consider you a non-resident from that point.  Changing your address won't stop them from sending you cheques (trust me, I tried!!)  Send that money back, call them and make sure it is cancelled.  If you cash the cheques, keep them in your Canadian account so you can easily pay it back next year. 

 

Before I left Canada I opened an RBC Canada and RBC USA bank accounts (TD also has this option) to easily move money back and forth. You didn't do this so I suggest a couple of wire transfers but leave your account open up there with a little bit of money (not over 10k) just so you can get that tax return (which WILL be less than you think it will be.)  While 12k may not seem a lot to you (it can go very fast though) you need to declare anything over 10k and on your US taxes you have to file a special form if you have RRSPs or savings (or property) in Canada when tax season comes due. 

 

You are supposed to inform the Canadian government when you live in Canada of your change of status within 30 days.  I'm not particularly sure it matters when you aren't living or a resident of Canada.  

 

 

I called today to try and cancel GST/HST and was told that I have to send a letter along with a cheque to return the money. I have never had cheques with my Canadian bank account and they cost $40 plus $15 shipping to order some here...do you know if the cheque has to be from my bank account? Could I have my mom write me a cheque and transfer her the money or use a money order? I was on the phone for at least an hour trying to sort this out and was disconnected twice...so I realllly don't wanna call back haha.

[Klee 6]

One more question, I'm looking now at my bank account and see that I have one deposit that says GST and another deposit that says "Provincial payment" which I believe is the Ontario Sales Tax Credit...do I have to pay them back for this as well?

[NikLR 13,227]

Yes both.

 

Unfortunately because your bank is in Canada it'll be difficult for you to get a cheque from the bank (they will give you cheques or money orders if you go INTO the bank without having to order a whole package).  This is something you pay not worry about and pay back with your taxes if you choose or wait until you're in Canada next.  I'm not sure if your mom doing it will work out since it's not your name, but you can try if you want to as well. 

[NikLR 13,227]

I remember sending them back ALL their cheques, that they sent to my Colorado address.  Like you think they'd clue in not to send me more money when I wrote a letter, sent them their cheques, and changed my address to the USA.  BUT NOOO!  They're so dumb about giving you money and then wanting it back later!   I had to put it into my bank account in Canada and just paid them back online when my tax return was done. 

[Klee 6]

Just now, NikLR said:

I remember sending them back ALL their cheques, that they sent to my Colorado address.  Like you think they'd clue in not to send me more money when I wrote a letter, sent them their cheques, and changed my address to the USA.  BUT NOOO!  They're so dumb about giving you money and then wanting it back later!   I had to put it into my bank account in Canada and just paid them back online when my tax return was done. 

Unfortunately it's my fault that it was direct deposited I didn't even update my address or tell the government I had emigrated until today, about 4 months later (woops). There were just so many things to think about when I first moved here that it didn't even dawn on me. Hopefully the lady fixed it as I've read about so many people having a hard time with these damn things. So, you mailed a letter and the cheques back and still had issues? I'm sorry I'm not super familiar with taxes, but lets say I didn't pay the money back right now and then waited to file my taxes, would they then take that out of my tax refund? I do plan to pay it back now, I just want to understand what would happen should I have problems. Thanks for your help!

[NikLR 13,227]

They either take it out of your tax refund OR they ask for you to pay it back.  I had a service Canada account so I didn't have any issues doing that.  However, when I owed money on my student loans, they just took my tax return to pay for it. 

[Klee 6]

Quick update in case anyone has a similar problem: I called again today to see if my mom could write a cheque for me and luckily I got an agent who actually knew what they were doing. The first woman I spoke to told me I had to write a formal letter stating the date I emigrated (because apparently she could no longer change it?) and also that I wasn't entitled to GST/HST and was returning the money. This agent informed me he could change all that information over the phone. He also told me I could just pay online...don't know why it took 3 different agents to finally give me a simple solution, but hey. I paid it off just now. What a headache. Here's to hoping that no more are direct deposited!