Second thought. Completely unrelated but it comes up again and again and again.
If you're here in the USA and you have an RRSP in Canada, be sure you file Form 8891 to make it tax exempt in the USA. If you're living in California guess what -- the earnings inside your RRSP are tax free on your US income tax return (Form 1040) but your RRSP earnings are taxable in California (Form 540).
Also don't forget Form TD F 90-22.1 -- the dreaded FBAR form. You're living here in the USA, so you're a resident and obliged on pain of death (I only slightly exaggerate) to disclose all of your foreign financial accounts. That means all of your Canadian accounts including RRSPs if you have them.
Canada <---> USA is kind of like Frying Pan <---> Fire in terms of income tax. There is a really good income tax treaty between the two countries that will eliminate a lot of little wrinkles.
For the moment, stick with the TN. It means that you can easily exit the USA and eliminate exposure to US taxes if you need to.
philiphodgen|15 years ago
If you're here in the USA and you have an RRSP in Canada, be sure you file Form 8891 to make it tax exempt in the USA. If you're living in California guess what -- the earnings inside your RRSP are tax free on your US income tax return (Form 1040) but your RRSP earnings are taxable in California (Form 540).
Also don't forget Form TD F 90-22.1 -- the dreaded FBAR form. You're living here in the USA, so you're a resident and obliged on pain of death (I only slightly exaggerate) to disclose all of your foreign financial accounts. That means all of your Canadian accounts including RRSPs if you have them.
philiphodgen|15 years ago
For the moment, stick with the TN. It means that you can easily exit the USA and eliminate exposure to US taxes if you need to.