Tax issues for Canadian beneficiaries of US estate Question Hi Phil, I came across one of your articles and your email. I am wondering if you would be willing to consult on what I think might be, to you, a fairly straightforward question regarding withholding rates on distributions from a US estate and Canadian beneficiaries. …
California residents with Canadian RRSP – Need tax help! Key Points California residents with Canadian RRSPs must navigate complex U.S. and state tax rules. The U.S. requires annual reporting of RRSPs on IRS forms to avoid penalties. California does not recognize RRSP tax deferral, leading to potential double taxation. Proper planning is essential to minimize…
US Social Security Payments to Canadian Key Points U.S. Social Security payments to Canadian residents are subject to a 25.5% withholding tax by the IRS. The Canada-U.S. tax treaty can reduce the withholding tax on Social Security payments to 15% for Canadian residents. Social Security benefits must be reported on Canadian tax returns and may…
How to correct under and over withholdings on US pensions – Episode 16 On episode #16 of Crossing the 49th Podcast we discuss how to correct under and over withholdings on US pensions. When you receive pension income from the US as a Canadian tax resident the custodian of the plan is required to withholding…
How to correct under or over withholdings on US IRA or pension payments Whether you’re a US citizen or a non-resident Alien US custodians are required to withhold US tax on payments of IRA and other related pensions to Canadian residents. Under the Canada-US income tax treaty non-residents of the US are liable for a…
30% withheld from US SEP IRA to Canadian resident Question I’m 60 and have a Vanguard SEP-IRA with $448K USD in the US. Vanguard now *always* withholds 30% on withdrawals (unless an RMD at 71) and won’t allow non-residents to change asset allocation. I think I want to lump sum move the funds to my…
US Resident Cashing Out RRSP Question Hello Phil, I found your commentary very helpful as I have been considering cashing out my RRSP and reinvesting in the US: https://www.hutcheson.ca/tax-on-rrsprrif-payments-after-moving-to-the-u-s/ I am Canadian living in the US and have been here along with my wife since XXXX. At the time we left our RRSP’s and let…