reasons for Canadians to NOT apply to become US citizens?

This question is primarily directed at those Canadians who have had their green cards for at least 5 years (or 3 years if married to a US citizen/1 year if military service).

If you have chosen not to apply to naturalize as a US citizen at this time I'm curious as to why. I think it is fairly common for Canadian immigrants to the USA to hold off on taking this final step--but it isn't obvious to me what the reasons are. Both countries are pretty flexible in allowing or tolerating dual citizenship these days although it wasn't always that way in either country. I don't know why someone would be hesitant to become a US citizen.

I realize some folks may hold the citizenship of a third country which would be negatively impacted by becoming a US citizen--so in that case it makes sense. Any other reasons?

As one is about to file for USC, I too see no reason not to get USC.

You have to file with the IRS for the rest of your life, whether you stay in the US or not. If you move back to Canada and fail to do this, you could run into trouble when crossing into the US for a vacation, etc. Also, you would be subject to the draft, which is a very real concern given how thin the US military is stretched at this point. Of course, should such an issue ever develop I suppose you could just return to Canada post haste.

What is the advantage of becoming a US citizen? I suppose if you were thinking of returning to Canada and one day moving back to the US, then you would avoid going through the Visa/LPS process again. But if you're staying put indefinitely, I don't see a great advantage to gaining citizenship.

-- Sun Jul 18, 2010 3:14 pm --

Apparently the draft applies to LPR's as well. So forget about that disadvantage.

You have to file with the IRS for the rest of your life, whether you stay in the US or not. If you move back to Canada and fail to do this, you could run into trouble when crossing into the US for a vacation, etc. Also, you would be subject to the draft, which is a very real concern given how thin the US military is stretched at this point. Of course, should such an issue ever develop I suppose you could just return to Canada post haste.

What is the advantage of becoming a US citizen? I suppose if you were thinking of returning to Canada and one day moving back to the US, then you would avoid going through the Visa/LPS process again. But if you're staying put indefinitely, I don't see a great advantage to gaining citizenship.

-- Sun Jul 18, 2010 3:14 pm --

Apparently the draft applies to LPR's as well. So forget about that disadvantage.

Most seem not to give reason but I suspect they already are dual citizens and would have to give up one. also my understanding is that when you swear the oath of allegiance (to become a citizen) you swear to renounce all other forms of governments, monarchy, blah blah blah. Although the supreme court said one could have dual citizenship, this does not seem to apply to naturalized citizens in the normal manner. (ie. one could be naturalized in usa and then later become a brazialian citizen through marriage without renouncing american citizenship. But $a canadian cannot guaranteed keep citizenship and be naturalized.

I suspect it is really the draft as the above option is never exercised in practice (taking away citizenships). I guess one could oppose the draft on religious grounds

To lose Cdn citizenship one must formally appear before a Canadian offocal and do so. Merely swearing allegience to another country does NOT invalidate Cdn citizenship.

"i hereby declare, on oath, that I absolutely and entirely renounce and abjure all allegiance and fidelity to any foreign prince, potentate, state, or sovereignty of whom or which I have heretofore been a subject or citizen..."
sounds like a voluntary loss of citizenship to me

As I said, Canada does not recognize this as a recission/renunciation of Cdn citizenship, since it is not performed in presence of a Cdn official.

http://www.cic.gc.ca/english/informatio ... iation.asp

Oh yes, the USA rules the world, what they say goes, lol not!! In the eyes of the USA--ur a USA citizen! In the eyes of Canada, I am a Canadian citizen and a USA citizen--DUAL!! One has fill out paperwork, pay a fee, think its $100 to renounce ur Cdn citizenship http://www.cic.gc.ca/english/inFORMatio ... nounce.asp

I am a dual US-Canadian citizen and I wish I wasn't from tax perspective. If you return to Canada, you will continue to have to file and PAY US taxes for the rest of your life. The filing itself is a pain and you'll have to pay an accountant that specializes in cross-border taxes. Also, you cannot arrange your tax situation to be beneficial in both countries. For example, your RRSP in Canada doesn't count as an IRA in US, and your mortgage interest in US doesn't help your taxes in Canada, and stock options you get in one country won't be favorably taxed in the other, and the US has an alternate minimum tax so often it can actually be higher tax rate in US (i.e. you live in Canada and do RRSPs and RESPs etc to lower Canadian taxes, but then get dinged by US).

Another way to say it is you will always pay whichever is higher and surprisingly that can be the US. When I've lived in Canada I've often had to pay $40k or more per year to US on top of all my Canadian taxes!

Another part of the taxes which gets tricky is residency. For example, if you live in Canada for a while then change residency to US, you have to be careful because Canada will consider you leaving and then all assets (like house you own in Canada) become taxable as if you sold it (even if you didn't).

However, if you don't sever residency then you will get double-dinged by state taxes because the individual states don't have any tax treaty with Canada.

Furthermore, you have to report your maximum monthly balance in all world-wide accounts to the IRS for the rest of your life. Not only is this a pain, but feels like invasion of privacy.

And lastly, don't think you can just renounce your US citizenship later on because when you do that they will tax you on your world-wide assets! You have to pay like 15% of your net worth to give up your US citizenship!

Don't get me wrong, there is benefit of being dual that I enjoy (mainly related to employment opportunities). But it is a serious, serious tax hassle.

Anyway, that would be the primary reason I would think people don't get the dual citizenship.

I WOULD advise getting US citizenship if you planned to permanently sever your residency in Canada. But if you have chance of going back, or going back and forth (like I do), be very careful.

Another way to say it is you will always pay whichever is higher and surprisingly that can be the US. When I've lived in Canada I've often had to pay $40k or more per year to US on top of all my Canadian taxes!

Unless you were working in US at the time, I found this difficult to imagine.

You'd need to convince me that your CPA didn't make serious errors.

For example, if you live in Canada for a while then change residency to US, you have to be careful because Canada will consider you leaving and then all assets (like house you own in Canada) become taxable as if you sold it (even if you didn't).

Not true for Cdn property. Looks like you consistently get poor information/advice. Hope I can correct your situation at serbinski.