Canada Revenue & Co.

[Chica Yeyé 41]

A reply from Colin to another post got me thinking (strange, me thinking).... so here go my usually insane questions . When you move to the US (assuming you will NOT return to Canada as resident), what happens to the following:

1.- Canada Revenue: I asume you file only one more year right?

2.- Canada Pension Plan (and other pension plans): How do you cancel and ask for refund? How much tax on it? Can you do this from the US?

OK, that's all I can think of right now... wisdom, anyone?????

L.

[raymaga 25]

You will file an income tax return for the last year you resided in Canada.

I have RRSP's in Canada that I am just leaving there until retirement age. Then, I will withdraw from them after retirement age.

You can collect your Canada Pension while living in the U.S. (at retirement age).

[Chica Yeyé 41]

I have RRSP's in Canada that I am just leaving there until retirement age. Then, I will withdraw from them after retirement age.

You can collect your Canada Pension while living in the U.S. (at retirement age).

Really? Only after retirement? So we cannot ask for our money back? We have no intent of returning to Canada as residents after we move. This sounds quite unfair Shocks.

[Allie 5]

You can collect CCP if you become disabled. Or collect early at age 60 and for go some money on the amount paid instead of waiting till age 65 and collect full amount owed

No, You can't get back what you paid in until you're ready to draw on it and it follows you anywhere in the world you may live

[thermophile 0]

does anyone know if this is different for Canadain PRs who do intend to someday return to Canada? I know that I maintain my PR by living with my citizen spouse (crazy thought actually living with the husband) but do I need to file Canadian taxes even after he immigrates to the US? or would we both be non-residents during the time that we both live in the US? This year (thanks to Ziggy's help) I figured out that I'm a deemed resident of both countries and therefor had to file taxes in both countries. Will that be the case forever?

[Chica Yeyé 41]

You can collect CCP if you become disabled. Or collect early at age 60 and for go some money on the amount paid instead of waiting till age 65 and collect full amount owed

No, You can't get back what you paid in until you're ready to draw on it and it follows you anywhere in the world you may live

That sucks. Big time. We were never PR's, neither we plan on returning. We started as foreign students (later I got work permit as Bren's spouse) but the Canadian government did happily collect CPP and EI for the past 6 years from both of us (which when we needed it was NOT available to us as we were not PRs).... now I am pizzed off. .Sorry needed to rant.

L.

[Chica Yeyé 41]

Well... did some digging. The Alberta Public Service Pension Plan DOES give you a refund if you ask for it - taxed.

Will continue the CPP digging tomorrow - sun came out in Edmonton LATE today, so it's time for Len & Bren to walk for some nice ice cream on Whyte Ave.

Cheerios, L&B.

[zyggy 9]

They money that you paid into CCP will be taken into to account by Social Security when you eventually apply for it. Basically, they will credit you for the amount that you paid in to Canada as if it was paid in the US when calculating your benefit amount.

[zyggy 9]

Well... did some digging. The Alberta Public Service Pension Plan DOES give you a refund if you ask for it - taxed.

Will continue the CPP digging tomorrow - sun came out in Edmonton LATE today, so it's time for Len & Bren to walk for some nice ice cream on Whyte Ave.

Cheerios, L&B.

YEah.. watch out for this one... you need to run the numbers to see which scenario would be better tax wise for you. Would it be better to take it out and claim it as income and add to your gross income when you lerave Canada. This could really push you into a higher tax bracket and it's higher tax rates. On the flip side, you could wait until you left Canada, make them take out the 25% non-resident tax, claim in on your US return and then see how the foreign tax credit will effect your US Taxes.

Run both numbers and see which one put you in the better tax situation and judge your withdrawl accordingly. Or it may be better off if you just leave it there and collect on it when your of retirement age.

[Chica Yeyé 41]

They money that you paid into CCP will be taken into to account by Social Security when you eventually apply for it. Basically, they will credit you for the amount that you paid in to Canada as if it was paid in the US when calculating your benefit amount.

zyggy, you are DA MAN. Now, if I understand correctly it would be a good idea to just 'transfer' from CPP to whatever the US has in place?

L.

[zyggy 9]

They money that you paid into CCP will be taken into to account by Social Security when you eventually apply for it. Basically, they will credit you for the amount that you paid in to Canada as if it was paid in the US when calculating your benefit amount.

zyggy, you are DA MAN. Now, if I understand correctly it would be a good idea to just 'transfer' from CPP to whatever the US has in place?

L.

Yes.. you don't have to do a thing until you eventually apply for Social Security. Just let the nice person at Social Security know that you lived in Canada and put money into CPP. Again, you should do the numbers before you put pen to paper.. it may be more advantageous for you to take CPP and Social Security.. or it may be more advantageous for you roll in the CPP monies and just take Social Security. You won't know until you ask them for benefit amounts.

Edited June 19, 2007 by zyggy

[Udella&Wiz 325]

My financial advisor checked things out for me on the Canadian Gov website for Revenue Canada

http://www.cra-arc.gc.ca/menu-e.html

follow under Individuals / Life events / Moving / Leaving Canada et Voila!

Good reading, but honestly I'm going to shell out and have an accountant do the nitty gritty the first year...especially when they remind you about not living in the province on the 31 Dec and the possible impact on Provincial tax credits etc....

Udella