On Campus Job and Investments

Wolfie
New Member



Joined: 08 Dec 2007
Posts: 4

Posted: Sat Dec 08, 2007 4:38 am

 

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Hi I'm a Canadian citizen doing grad studies in the US. I recently got an on campus job and want to invest some of the income I get from that job. I have an investment account in Canada and was thinking of opening one up in the states.

My question is, will this "earned income" be eligible for RRSP contributions? IRA? If I'm eligible for either one or both, will I be better off with the RRSP or the IRA? Will capital gains to taxed every year by Canadian gov while I'm still living in the States? I read that capital gains will be taxed every when I move back to Canada.

Also, what if I open just an investment account? Will capital gains be subject to double tax?

I want to start investing for the future. My plan is to work in the states for at least a few years, but eventually want to retire back in Canada. Am I better off simply putting the income I earn in the states in my investment account in Canada? Or am I better off just opening an account here in the states and perhaps sell off everything if and when I move back.

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Reba
Moderator


Canuck in NC

Joined: 16 Jul 2004
Posts: 1451
Location: North Carolina

Posted: Sun Dec 09, 2007 7:46 am

 

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Your best option here would be to speak with a financial advisor who is familiar with the US/Canada tax treaty.

You might also want to get a book called The Border Guide (available in Canada book stores). It has loads of financial information for Canadians living and working in the US. None of which I could understand myself, so I ended up using the book as a coaster. But others with more understanding of finances and taxes have found it quite helpful.
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Wolfie
New Member



Joined: 08 Dec 2007
Posts: 4

Posted: Mon Dec 10, 2007 8:39 pm

 

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Thanks. I have ordered the book. Is there anything else I should look at?

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Reba
Moderator


Canuck in NC

Joined: 16 Jul 2004
Posts: 1451
Location: North Carolina

Posted: Tue Dec 11, 2007 4:04 am

 

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Before I moved to the US I spoke with a fianancial advisor in Canada. They found out a few things for me and explained a lot in layman's terms.
_________________
I miss Shreddies!

Are you in the US or Canada? Want to make some extra money? Check out My Watkins website for some awesom products and business opportunity.

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