The complexities associated with moving to Canada are astounding, yet according to the Association of Canadian Studies in the U.S., over 12,000 people moved from the U.S. to Canada in 2006 with little or no idea of these complexities. In addition, there are hundreds of thousands of U.S. citizens and Green Card holders already living in Canada with no idea of the U.S. tax and estate planning issues that apply to them.
Often the similarities in culture, currency, language and goods consumed between the U.S. and Canada lead people to think their situations are simple.
In fact, the differences in taxation, investing, healthcare, wills and estates are profound.
EZ Canada Moving recommends this book for anyone relocating to Canada from the United States.
Moving to the Canada From the U.S.
For example, many American citizens and Green Card holders living in Canada mistakenly believe they don’t have to file US tax returns, particularly since they don’t have any US source income. In fact, they must file US tax returns annually and declare their Canadian income on both their Canadian and US returns. These same folks are also subject to US gift and estate tax laws as well. For years, the tax authorities had no means of finding out. However, in December of 2011, the “Beyond the Border” initiative was signed by Canada and the US to improve security at the border while increasing the fluency of trade, commuting, etc. Part of this plan is for both countries to share information through a joint entry-exit system at the border to root out non-fliers or those overstaying their welcome. There has also been evidence of increased coordination between US Citizenship and Immigration Services, Customs and the IRS as border services agents are asking US citizens living in Canada to confirm they are filing US returns!
Moving to the U.S. From Canada
The two items you absolutely “must have” before you move to the States is adequate health care coverage and a legal means of residing in the US (a valid visa). Without both of these in place, do not even consider a US move. This book covers the following topics when moving from Canada to the United States: Health Insurance Immigration US Taxes Social Security Canadian Taxes and more