Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@beaconhillwm.ca or via telephone at 778.433.1314. You can also read more about Phil at www.Beaconhillwm.ca/team/about-phil/
Cross Border Tax Q&A – Tax Forms For RRSPs in the US?
Question
Hi Phil
My US accountant told me that my Canadian RRSPs are not taxable in the US, however someone told me that I need to file a TD9022 to report the RRSPs. Does this form exempt tax on the RRSPs? I moved to the US from Canada 3 years ago.
Thanks
XXXXXX
Answer
Hi XXXXXX
Your friend was correct that you would have to file a TDF 90-22.1 with your US tax return to claim the RRSP as long as you had foreign accounts that totaled more than $10,000 USD. If the value of your total accounts (including non-registered accounts) does not exceed $10,000 the TDF 90-22.1 is not required. Be sure to file this form as the penalty associated with not filing is $10,000 (I haven’t actually seen the IRS impose this penalty, however I’ve heard of other that have).
Possibly more important is the required filing of a form 8891. The deferral of RRSP income is not automatic for US purposes and this form needs to be filed to defer such income.
If you haven’t been filing these forms I suggest you discuss it with your current accountant and get caught up.
Hope that helps
Regards
Phil Hogan, CA
250-661-9417
This commentary reflects the personal opinions, viewpoints and analyses of the Beacon Hill Wealth Management Ltd. partner providing such comments, and should not be regarded as a description of advisory services provided by Beacon Hill Wealth Management Ltd. or performance returns of any Beacon Hill Wealth Management Ltd. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Beacon Hill Wealth Management Ltd. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Any discussion about taxation is for educational purposes only and should not be viewed as professional advice. Consult your tax professional for tax advice on your particular situation.
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