Tax Issues for Canadians Moving to the U.S.: Part 1 (2020)

[@eddie-xi6ls]

So many things to clarify. I moved from Canada to California many years ago so I believe I know what I'm talking about. Firstly Warren is right that Canada doesn't tax CPP benefits, however the Canadian Government sends a 1099R form to recipients outside Canada. In the U.S. this is added on to our income when we file our taxes and we psy taxes on the whole amount as if the benefits were paid in U.S. funds. Secondly we do pay a whole lot more in Social Security than Canadians do in the Canada Pension Plan but we get considerably more at retirement. Say a couple paid maximum in Social Security (It allows in not counting for a certain number of low earning years) at retirement age the couple retiring in 2023 would get approximately $5500 a month combined ($2750 each). If the wife never worked or did work and didn't earn much she would collect 85% of what her husban receives or around $1800 a month. Thirdly mortgage interest and property taxes deductions are now limited to $10,000. This has really helped the average American since the standard deduction has been raised to $27,500. What this tax bill has done is stopped subsidizing the ultra rich with multi million dlollar. mortgages and high property taxes. For example say in California a multi million dollar home with yearly mortgage interest of $150,000 and property taxes of $50,000 plus State Income Tax of $40,000 prior to 2017 the taxpayer could deduct $240,000 off the federal taxes. Now since it's limited to $10,000 the taxpayer takes the $27,500 deduction. In a nutshell prior to 2017 the lower income taxpayers were subsidizing the high earners in high real estate and property taxes not to mention their high State income taxes that are also limited to that combined $10,000 maximum.

[@SakthiP]

Great video, thank you

[@terrykilshaw8970]

Can you do one for a Canadian who married an American then moved to the US for many years and wants to return to Canada when she reaches 66 and is eligible to get US social security?

[@rohanutep81]

Is it better to sell, rent or keep empty house if moving to USA on TN visa?

[@rosem4741]

My daughter became non resident of Canada on Jan 1 2023, she lived and worked all year in the US, but had a small income of aprox 3,500 paid to her in US dollars to her US bank account in 2023 for self employment income. They gave her a T4ANR but did not withold tax. Does she have to file and pay tax on that income in Canada? She must claim all world income in the US

[@mohammed.hajeesh4881]

Hi Is it possible for to book an appointment with you Thanks ☺️