US/Canada Dual Citizenship

[mellybear]

Thank you everyone for all of your responses.

So what it basically comes down to is "intent"?

If, at the time I apply for & obtain Canadian citizenship, I am not doing so with the intention of giving up my American citizenship there should be no problem getting both of them? However, if I was applying for Canadian citizenship for the purpose of relinquishing my American citizenship that is when there would be a risk of losing it (assuming I didn't go to the Embassy or Consulate and formally renounce it)? And, unless told otherwise, the State Department will assume there is a lack of intent for an American citizen who applies to become a dual US/Canadian citizen to give up their citizenship?


I apologize if it seems like I'm repeating myself. The momentary thought that I could potentially lose my American citizenship if I applied to become a dual citizen caused me a lot of worry since I have absolutely no desire to give up my American citizenship.

 

[scylla]

The US government has no idea what your "intent" is if/when you become a Canadian citizen. They don't have access to your thoughts.

The only way you can lose your US citizenship is if you formally / officially relinquish it once you have Canadian citizenship. This requires paperwork. If you have no plans on filing such paperwork then you are worrying about a non-existent problem.

 

[keesio]

Also, why would I give up my U.S. citizenship when it's something that a lot of people around the world are trying to get, and it's literally a couple hours' drive away from nearly every Canadian?

This:
http://www.advisor.ca/tax/tax-news/expats-renounce-u-s-citizenship-due-to-tax-complications-146702

 

[YorkFactory]

This:
http://www.advisor.ca/tax/tax-news/expats-renounce-u-s-citizenship-due-to-tax-complications-146702

Meh. You have to make a lot of money (or have a lot of unearned income) to pay taxes in the U.S. if you don't live there. Yes, I'm supremely annoyed by having to pay an accountant to do my taxes every year, but the alternative (giving up U.S. citizenship) is much worse, in my opinion.

 

[links18]

Generally taxes are higher in Canada than in the US therefore most US citizens living in Canada do not pay US taxes.

Only if you make over $75K or. Below that, Canadian income taxes are often less.......

 

[links18]

I was told by an immigration lawyer the similar thing that rayman_m said.
The lawyer told me that I can have several citizenships but I can't get a new one after my American citizenship.

hope it helps,

The immigration lawyer you talked to needs to stop giving out bad advice.

 

[farrous13]

Only if you make over $75K or. Below that, Canadian income taxes are often less.......

You're telling me that over 75k, the US taxes are higher than here in Canada?? Is that dependant on the state? or is it a federal thing?

 

[links18]

You're telling me that over 75k, the US taxes are higher than here in Canada?? Is that dependant on the state? or is it a federal thing?

No, over about 75K Canadian taxes are higher. Under that, you usually pay less in Canadian taxes. Of course, you can exclude a good chunk of foreign earned income from your US taxes. There are many variables, but generally Canada taxes moderate income earners lower than the US.

 

[keesio]

Meh. You have to make a lot of money (or have a lot of unearned income) to pay taxes in the U.S. if you don't live there. Yes, I'm supremely annoyed by having to pay an accountant to do my taxes every year, but the alternative (giving up U.S. citizenship) is much worse, in my opinion.

If it was as simple as that, then I wouldn't mind so much. But the fact that TSFA and RESP are considered trusts and do not have tax free status to the US (in addition to having to file complex 3520/3520a forms) and Canadian Mutual Funds are considered off-shore corporations and your RRSP contributions are taxable, you really do have to restrict yourself to avoid paying any decent amount of taxes. The FTC helps to a degree but not completely. Working for a Canadian employer that has a lot of US clients is a penalty because when I travel to the US on business for my Canadian employer, the US considers it US earned income and taxable (and not covered by the FTC or FEIE). On top of the 1K a year in accountant fees....

 

[Dejaavu]

Links18,

I worked in the US and I was making under 75 and I make under 75 here and I paid much less in taxes in the US than in Canada.
Unless something has changed in the last five or six years. I do not think taxes under 75 k are less in Canada.

Can you please provide facts/data?

 

[keesio]

Links18,

I worked in the US and I was making under 75 and I make under 75 here and I paid much less in taxes in the US than in Canada.
Unless something has changed in the last five or six years. I do not think taxes under 75 k are less in Canada.

Can you please provide facts/data?

Me too. And I lived and worked in a state with high state taxes (New York).

 

[rayman_m]

Links18,

I worked in the US and I was making under 75 and I make under 75 here and I paid much less in taxes in the US than in Canada.
Unless something has changed in the last five or six years. I do not think taxes under 75 k are less in Canada.

Can you please provide facts/data?

Federal:
15% on the first $43,953 of taxable income
22% on the next $43,954 up to $87, 907 of taxable income (pay on difference bet $43,953 & $87,907).

Provincial (As example: Ontario)
5.05% on the first $40,120 of taxable income,
9.15% on the next $40,122, up to $433,847

Let' say: If you have 75k income while spouse is 0k. Total Federal and Ontario Tax will be: (17k - tax credit of of 6k)= You pay 11k net tax..

 

[Dejaavu]

I worked in Maryland, District of Columbia and Virginia and I paid more in taxes in Ontario than the two states and the district. In all cases my income was lower than 75k

 

[links18]

I worked in Maryland, District of Columbia and Virginia and I paid more in taxes in Ontario than the two states and the district. In all cases my income was lower than 75k

There are a lot of variables. But I have gotten money back on my Canadian taxes while actually having to pay the US several times. There are comparisons online somewhere. Not sure if I can find them though.