Anyone who holds Dual US-Canadian Citizenship?

[Savak]

Is there any benefit? What are the pros and cons?

My dad just got his Canadian Citizenship last week and he is now debating whether he should now focus on fulfilling the residency requirements of his US Green Card or he should just give up the US Green Card rather than go through the hassle involved in getting it i.e. the requirement to stay in the US 6 months every year.

I understand a lot of people are now renouncing their US Citizenship, Green Card especially those individuals who do not live in the US because they are fed up with the cumbersome process of filing US tax returns every year and do not feel the need to file taxes of a country that they do not live in and have no intentions of living in.

However life has taught us that when you have something in hand at this moment, you should not let it go to waste at all. For e.g. my parents used to live and work in the UK in the early 80's where my elder brother was born. Had they stayed for another 8 months, they would have been eligible to apply for UK Citizenship, passports at the time but my mother was feeling very home sick and she didn't like living in a Western Country and both my folks at the time were off the opinion "What do we need a western passport for, a UK passport for?"

Well my dad still points that out to me as one of the biggest mistakes he made in his life and how he regrets it and always recommends to us i.e. his kids not to make the same mistake as they did.

Anyways, I will be interested in hearing from people about this.

 

[Seym]

Thousands of people are both a canuck and a yankee...
It's up to your father to see whether that annual tax filing annoyance is a good enough reason to restrain himself from the access to the opportunities that a country 10 times bigger than Canada has to offer.

In all cases, being "only canadian" VS being both canadian and american is a real first world problem...

 

[Savak]

Thousands of people are both a canuck and a yankee...
It's up to your father to see whether that annual tax filing annoyance is a good enough reason to restrain himself from the access to the opportunities that a country 10 times bigger than Canada has to offer.

In all cases, being "only canadian" VS being both canadian and american is a real first world problem...

I am actually encouraging him to go for it.

With the annual tax filing requirement, I mean how much will it cost an accountant to deal with it? Some accountants file both Canadian and US tax returns.

I agree that the employment and business opportunities that the US will provide vis a vis Canada is a good enough reason to aim for US citizenship.

 

[Chi2Van]

I just renounced my US Citizenship. My rationale was that by doing so it simplifies my life, I no longer have to report ALL my accounts (bank, investment, etc. regardless of if they are sole accounts or joint accounts with my spouse), I can take advantage of TFSAs with no worries, etc. Personally, I know I'll never live in the US again, and the burdens of having to report everything was more than I wanted to have to deal with. I found the tax process to be cumbersome and invasive, and I'm comfortable holding only Canadian citizenship.

 

[sns204]

I just renounced my US Citizenship. My rationale was that by doing so it simplifies my life, I no longer have to report ALL my accounts (bank, investment, etc. regardless of if they are sole accounts or joint accounts with my spouse), I can take advantage of TFSAs with no worries, etc. Personally, I know I'll never live in the US again, and the burdens of having to report everything was more than I wanted to have to deal with. I found the tax process to be cumbersome and invasive, and I'm comfortable holding only Canadian citizenship.

If you're okay sharing, do you have family in the States? If so, how did they react to you giving up your US citizenship?

 

[keesio]

The tax compliance issues is really a big headache. My advice is this - does your Dad have any plans to move to the US? If the answer is a firm "no", then he may want to consider giving up his US residency. If he wants to leave the door open to going to the US, then he may want keep it (at least until he gets frustrated enough with his US tax responsibilities to reconsider).

I am a dual citizen of the USA and Canada. I am keeping my US citizenship. My ties to the country are too strong to consider renouncing

Note that CPR tends to have a dim view of renounced citizenship. A Canadian citizen that renounced their US citizenship tends to be hassled at the border more than a Canadian citizen that was never a US citizen. They can't deny you entry in normal circumstances, but they can question you, send you to secondary, etc.

 

[Savak]

The tax compliance issues is really a big headache. My advice is this - does your Dad have any plans to move to the US? If the answer is a firm "no", then he may want to consider giving up his US residency. If he wants to leave the door open to going to the US, then he may want keep it (at least until he gets frustrated enough with his US tax responsibilities to reconsider).

I am a dual citizen of the USA and Canada. I am keeping my US citizenship. My ties to the country are too strong to consider renouncing

Note that CPR tends to have a dim view of renounced citizenship. A Canadian citizen that renounced their US citizenship tends to be hassled at the border more than a Canadian citizen that was never a US citizen. They can't deny you entry in normal circumstances, but they can question you, send you to secondary, etc.

The main arguments for the US is access to a much bigger economy, bigger and better employment opportunities and business opportunities, higher salaries for the same positions vis a vis Canada, lower Taxes vis a vis Canada, lower cost of living in some states in the US.

Yes the drawback is the cumbersome tax filing requirements in the US and the only real thing in favor of Canada is the free Health Care and Health Care is a big problem in the US.

 

[Savak]

But why is the tax compliance a headache if you hire a really good accountant to deal with it? US Citizens pay $1000-$2000 to their accountants for filing their tax returns so shouldn't the accountant make it easier for the citizen to deal with it?

 

[punk]

Same with me. My GC has been approved for 2years but I have been delaying it. I am just waiting for my Canadian citizenship so they don't cause any issues if they see that I am US green card holder. Even after getting green card,i would prefer to live in Canada.

 

[keesio]

The main arguments for the US is access to a much bigger economy, bigger and better employment opportunities and business opportunities, higher salaries for the same positions vis a vis Canada, lower Taxes vis a vis Canada, lower cost of living in some states in the US.

Yes the drawback is the cumbersome tax filing requirements in the US and the only real thing in favor of Canada is the free Health Care and Health Care is a big problem in the US.

Yes, for sheer economics and earning potential, the US is very good.

The health care argument is more complex. My view is that if you have one of the better health coverage (whether purchased yourself or provided by your employer) in the US, it is usually better than what you can get here. But of course you need to make sure you are getting coverage from somewhere where you don't have to worry about it here. Also, the health care is not "free". There is a reason why our taxes are higher in Canada. This "pro" that the US has (lower taxes) comes with a cost (no "free" heath care) and vice versa

 

[Chi2Van]

If you're okay sharing, do you have family in the States? If so, how did they react to you giving up your US citizenship?

I do still have family in the states- my parents, siblings, etc. My siblings understand my reasoning and ask, somewhat jokingly, if I can bring them to Canada. My mother cannot understand why I wouldn't want to be a citizen what she describes as the greatest nation in the world! When she said that, I asked her if America is the already greatest nation in the world, why does Trump say that he's 'Making America Great Again'? Needless to say she didn't appreciate the nuances of my question.

 

[alphazip]

Yes, Americans are always being told they're the best people, the greatest country, etc. They believe it, too! I'm just amazed at how many Canadians have drunk the Kool Aid and wish they could join Trumpland. It's like looking at a car crash on the other side of the highway and wishing you could join in! Maybe it's all based on money...the thought that if he/she could only move south they'd have a wonderful life that they're somehow prevented from having here. Of course, money is important, but there's more to quality of life than just money. As a person who could live on either side of the border, I choose Canada.

 

[2_of_5]

there's more to quality of life than just money. As a person who could live on either side of the border, I choose Canada.

Same here, alphazip. My renunciation appointment is August 30, and I am casting my lot solely with Canada.

 

[keesio]

But why is the tax compliance a headache if you hire a really good accountant to deal with it? US Citizens pay $1000-$2000 to their accountants for filing their tax returns so shouldn't the accountant make it easier for the citizen to deal with it?

Having to pay thousand(s) for an accountant is part of the headache. If I didn't have to deal with US taxes, I could just do it all with TurboTax. And it is not just the accountant fees. Having to avoid legitimate investment vehicles like TFSA, RESP and mutual funds offered from your own local Canadian bank is another factor. There is the issue of capital gains on your home. And if you want to really cover your bases... if you win lottomax, while you don't pay Canadian taxes, you will have pay a good chunk to the IRS. There are other headaches also. This is just a start

 

[itsmyid]

Having to pay thousand(s) for an accountant is part of the headache. If I didn't have to deal with US taxes, I could just do it all with TurboTax. And it is not just the accountant fees. Having to avoid legitimate investment vehicles like TFSA, RESP and mutual funds offered from your own local Canadian bank is another factor. There is the issue of capital gains on your home. And if you want to really cover your bases... if you win lottomax, while you don't pay Canadian taxes, you will have pay a good chunk to the IRS. There are other headaches also. This is just a start

A lot of those make sense, but the lottomax part... I am not worried about it at all LOL