US Citizens Living
in Canada

Over one million US citizens live in Canada. Canada’s peaceful, liberal culture, coupled with the country’s close physical proximity to the US, makes it an appealing home for US citizens.

US citizens move north under a variety of circumstances. Some US citizens living in Canada were born in the US and moved to Canada with their parents as babies, young children, or teenagers. Others come to Canada to attend college or university and stay north of the border to begin their professional lives. Still other US citizens come to Canada as adults, either to relocate for work, because they are marrying a Canadian, or simply because they would like to retire in Canada.

US citizens living in Canada are generally very aware of the many issues involved in being a dual citizen. Indeed, US citizens living in Canada must consider several cross-border planning points to ensure that they live successful financial lives in compliance with both countries’ rules and regulations.

For US citizens living in Canada, cross-border tax considerations are a chief concern. Many Americans are familiar with the fact that the US taxes its citizens on their worldwide income, regardless of residency. Americans living in Canada therefore want to make sure that they are not caught in any cross-border tax traps, particularly if they have US business holdings or a US investment portfolio.

How to handle American retirement accounts, such as 401(k)s and IRAs, in the most tax-advantageous way, is another important consideration. US citizens living in Canada also wonder whether to take advantage of Canadian retirement tools such as the Registered Retirement Savings Plan (“RRSP”) and the Tax-Free Savings Account (“TFSA”).

American citizens living in Canada typically also want to know whether they will be eligible for US Social Security payments, and if so, how Canadian pension programs such as Canada Pension Plan (“CPP”) and Old Age Security (“OAS”) will affect the amount of their Social Security payments.

Other important questions concern how to manage tax filing and reporting obligations in both countries, as well as the pros and cons of relinquishing US citizenship.

Keep reading for more information about these cross-border financial planning topics as they apply to US citizens living in Canada. Please note that the topics covered below require detailed, comprehensive analysis before specific recommendations can be made to an individual client, which is the purpose of creating a cross-border financial plan prior to departure.