Pros/Cons of getting US Citizenship as a Canadian?

[zentaco 28]

Wasn't sure if I should post this in the citizenship forum, as I wanted to hear thoughts from a Canadian perspective.

 

I've been in the US with a green card (post K1 visa) since late 2012. I've thought about trying for US citizenship but do know it comes with getting taxed double if I were to move out of the country someday. Not sure if this applies to Canada with trade agreements or not. But with the immigration hub-bub over the last few years and the rollercoaster that is 2020, I feel a bit insecure with just the card. It's up for renewal in a few years and I'm always scared of losing it when we travel. For those that became naturalized or know someone that have been, are there any regrets that come with becoming a citizen of the US? How do you handle travel out of country (assuming you don't legally give up canadian citizenship since the US has to renounce your original citizenship)? Anything else that's good to know/consider? Thanks!

[SteveInBostonI130 3,463]

I think there are some misunderstandings in your post.

 

First, the US does not require anyone to renounce their citizenship of their native country.  The US also does not require anyone to renounce US citizenship if they want to become a citizen of another country.

 

Second, US does not double tax. However, they will tax you on foreign income if you are not taxed on that income by the foreign country.  I am simplifying it - there is a worksheet that is used to determine US tax liability on foreign income.

 

[zentaco 28]

Thanks Steve. This is the sort of stuff I'm ignorant about right now. Not sure if it's the best time to apply, but feel like I should be more knowledgeable about what would change if I get naturalized.

[MovingToFlorida 71]

48 minutes ago, zentaco said:

Wasn't sure if I should post this in the citizenship forum, as I wanted to hear thoughts from a Canadian perspective.

 

I've been in the US with a green card (post K1 visa) since late 2012. I've thought about trying for US citizenship but do know it comes with getting taxed double if I were to move out of the country someday. Not sure if this applies to Canada with trade agreements or not. But with the immigration hub-bub over the last few years and the rollercoaster that is 2020, I feel a bit insecure with just the card. It's up for renewal in a few years and I'm always scared of losing it when we travel. For those that became naturalized or know someone that have been, are there any regrets that come with becoming a citizen of the US? How do you handle travel out of country (assuming you don't legally give up canadian citizenship since the US has to renounce your original citizenship)? Anything else that's good to know/consider? Thanks!

I am Canadian and don't yet live in the US. Atm I plan on getting dual citizenship mlst likely. My father in law and sister in law moved to the US from Canada and both got dual citizenship and both are very happy with their decision.  I believe you always keep your Canadian citizenship. Dual is the only option I think. Both relatives have traveled all over the world with dual citizenship with no issues. 

[Boiler 45,564]

A friend who is a LPR and Candian and been here for a very long time did not naturalise due the Inheritance tax issues.

[igoyougoduke 1,656]

1 hour ago, zentaco said:

Wasn't sure if I should post this in the citizenship forum, as I wanted to hear thoughts from a Canadian perspective.

 

I've been in the US with a green card (post K1 visa) since late 2012. I've thought about trying for US citizenship but do know it comes with getting taxed double if I were to move out of the country someday. Not sure if this applies to Canada with trade agreements or not. But with the immigration hub-bub over the last few years and the rollercoaster that is 2020, I feel a bit insecure with just the card. It's up for renewal in a few years and I'm always scared of losing it when we travel. For those that became naturalized or know someone that have been, are there any regrets that come with becoming a citizen of the US? How do you handle travel out of country (assuming you don't legally give up canadian citizenship since the US has to renounce your original citizenship)? Anything else that's good to know/consider? Thanks!

pros; you cant be deported with citizenship. 

 

cons: your need to file tax filings on world wide income

 

[mkayyy 14]

One other aspect that affects some is the US "Exit Tax".  If your worldwide assets are large enough, you are subject to the exit tax after renouncing a green card after 7years or whenever you renounce your citizenship.  So, at least for us, the exit tax issue of not getting citizenship becomes moot after 7years on a green card.  

Edited November 10, 2020 by mkayyy

[zentaco 28]

Thanks, I'll have to look into what the inheritance tax entails. We don't have children, but if something happened to both of us I'd probably want a portion of our assets/money to go to Canadian family. I already report my Canadian banks accounts to the IRS at tax time, but was thinking about the implications as well if we decided to move to Canada. Hadn't heard of the exit tax before so good to know.

[NikLR 13,227]

It's a totally personal thing.  Generally if you plan on living in the USA for the rest of your life, there really aren't any downsides.  The only downsides is if you end up living back in Canada.  You'd have to file taxes for the rest of your life in the USA and upkeep your US passport for entry into the USA.  But really isn't a huge deal.  

for me it ends up being the oath that you have to say.  and I have some personal reasons.  

 

[zentaco 28]

I guess that's the trick. I moved here for my spouse and if something happened to him, there's a high chance I would move back to canada, since all my family is there. But it would also be nice if he could potentially come to canada one day without us not being able to move back (since my green card would lapse).

[Benjamin44 10]

14 hours ago, Boiler said:

A friend who is a LPR and Candian and been here for a very long time did not naturalise due the Inheritance tax issues.

That's interesting- never heard of this as a reason. Is the issue that when his/her non-American parents passed away, then he/she would be taxed on the inheritance?  I had always thought that it's the person who passes who "gets taxed," and not the person inheriting, so the US wouldn't touch it in that case. Or, were they worried about when they pass and the kids getting taxed? Because then it wouldn't matter if they were LPR they would still get taxed, no?

[Boiler 45,564]

32 minutes ago, Benjamin44 said:

That's interesting- never heard of this as a reason. Is the issue that when his/her non-American parents passed away, then he/she would be taxed on the inheritance?  I had always thought that it's the person who passes who "gets taxed," and not the person inheriting, so the US wouldn't touch it in that case. Or, were they worried about when they pass and the kids getting taxed? Because then it wouldn't matter if they were LPR they would still get taxed, no?

I know he has money and certainly his Canadian family did, the precise details I forget.