Help- Tax implications of Moving to USA on TN->Green Card

Hi folks:

Need help regarding Tax implications of Moving to USA on TN-> H1B -> green card. I have read the forums and found a lot of information. Still it may be useful for everybody if I put together something for people who move to USA with tN->H1B->green card rout within a few years.

I do have a couple of question at the end, and I may be missing something that you can add.

Here is the detail how things went:
1) Three years ago : Wife got H1B, I got H4 and moved to USA.

2) Two years ago :
a. Got job myself on TN1
b. For last years taxes, paid Canadian Taxes on Canadian income and USA tax on US income. Had only job income. Almost negligible other income – about 150$ in dividend income etc.

3) Last year:
a. Fot H1B.
b. For last years taxes: Filed as non resident in Canada, forgot to tell banks to treat me as non resident. Filed as resident in USA, paid social security taxes etc.

4) This year:
a. Received green card for all family.
b. Now is the time to file last years taxes. Looked at the requirements and read this forum.

Issues and questions:
1) For last years, I have the following from Canada:
a. T3 for dividend income (150$)
b. RC62 with 2200$ I paid back to CRA, which I can now use as a credit in tax filing.

2) Most importantly: How do I file taxes? Show both T3 and RC62 in Canada and US tax filing? I will be filing non-resident Canada taxes

3) Can I use RC62 for tax credit in USA or I can only use for Canadian Taxes? Since I had no income in Canada, Its not gonna help me in Canadian taxes.

4) Since this year I have got green card, I have to file FBAR to show my international bank accounts. Do I have to file FBAR this year or next year (while filing this years taxes).

5) File 8891 for RRSP I have in Canada

6) What to do with RESP I have in canada

7) Can I still keep my bank accounts, RRSP, RESP and mutual fund investments there or do I have to move them to USA?

Do I need to get help from international tax filing experts or is it simple enough that I can handle all this myself with the help of local USA accountant. I am a bit concerned because I didn’t know at all FBAR and 8891. and neither my local accountant told me about that. I saw it on the forums.

9) Is there anything else I am missing I should have done?

Hi there SB,

Looks like you understand much of the basics but there are other aspects for many of those issues.

Questions 1-4: You should consider setting up a consultation with a cross-border tax specialist. There's plenty that can be written here but the best answers will have to account for further details of your situation. I can recommend someone if you want to PM or email me.

5) You should fill out and attached the 8891 to your US return to continue to defer RRSP income.
6) You can keep your RESP but can't contribute. You may be able to switch subscriber to a Canadian one to continue contributions (or have them open one). Hard to say w/o more info.
7) Again, I'd recommend getting a cross-border tax specialist. I can recommend one if you need someone who you can just talk to first. It really is worth it to avoid expensive mistakes that can't be undone.
You can keep all your investment and bank accounts. Management is another issue though - firms like mine (Pacifica Partners) are able to manage cross-border accounts and provide financial planning and also offer free consultations. Some discount brokerages also allow you to manage your CDN (RRSP/RESP etc) investments. There are tax concerns that also need to be addressed with non-registered accounts (PFIC - Passive Foreign Investment Corporations - where Mutual Funds are concerned).

Hope this helps,

Naveen Gopal