Cross Border Tax Q&A – Giving up a Green Card and US/Canada Taxes

2
222

Question

Hello there

My husband and I are planning on moving to Vancouver next year between October and December. My husband is a Citizen of the US and I am a Green Card holder. I’ll be receiving Social Security payment while in Canada and some investment income. I understand (from reading your website) that green card holders are also required to file a US tax return. I’m considering giving up my green card to avoid having to file both a Canadian and US tax return.

If I do give up my green card will I have to file a US return still for my social security?

Hope you can help with my tax questions.

Thanks

XXXXXX

Answer

Hi XXXXXX

The short answer to your question is no. You won’t have to file a US tax return if you relinquish your US green card. In fact, your social security income would only be taxable in Canada even if you were a US citizen or green card holder.

I would suggest that you consider keeping your green card and the possibility of naturalizing into Citizenship before entering Canada. In most cases filing a dual Canadian/US return (especially in your situation) is not terribly complicated or expensive. Considering that your husband is a citizen it would be a shame to lose your citizenship opportunity while you had it. Once you give up your green card there’s no way of getting it back.

Hope that helps

Regards

Phil Hogan, CA
250-661-9417

READ  Cross Border Tax Q&A - Tax Forms For RRSPs in the US?

Do you need help from one of our Cross Border Professionals? Contact us here and we'll reach out shortly.

2 COMMENTS

  1. Hi, I have held a US Green Card since 2005. I moved to Singapore two years ago and have no plans to return, so that I might relinquish my Green Card. If I do that, what is going to happen to the moneys accumulated in my Social Security Account? Shall I keep paying taxes in the US after I relinquish? I have a property in the US, what would happen to it, can I keep it?

    Thanks
    Victor

    • Victor

      You seem to have a significant amount of tax issues outstanding at the moment. I hope you’ve been filing US tax returns since 2005, if not you should call me ASAP so we can clarify your situation.

      Give me a call at 250-661-9417.

      Phil

LEAVE A REPLY

Please enter your comment!
Please enter your name here