Serbinski Weinberg, Ltd., Certified Public AccountantsTax and other financial matters concerning Canadian professionals in the U.S. and U.S. citizens in Canada Includes income and estate taxation, social security, health insurance, retirement accounts, cross border tax issues, and other matters affecting your pocketbook. Topic Administrator: Mark T. Serbinski, CA, CPA of Serbinski Weinberg, Ltd. CPA's and Serbinski Partners, Chartered Accountants

Canada to U.S. Business Immigration Newsgroup

Topic: Tax and Financial

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Posted by Ken on August 25, 2004 at 23:02:41:

In Reply to: Re: Keeping a US bank account open after moving to Canada posted by Matthew Brooks on August 25, 2004 at 09:54:45:

I'm a dual US/Canadian citizen - moving back to Canada end of September. Can I keep a US checking account open (used to payoff my student loan) and keep a US credit card - or would this give the IRS reason to believe I'm still a resident..and tax me accordingly?
First off, a bank account is not a sign of residency, in either US or Canada.

HOWEVER, since you are a US citizen, you will ALWAYS have to file your taxes in US regardless of where you live.

You will still eventually qualify for any Foreign income exclusion as long as you are physically out of US for the required days, as your bank account is not an indication of presence.

Also, if moving US-to-Canada is anything like moving Canada-to-US, it's likely smart to hang on to that bank account and credit card. It tends to be handy to have these resources on the other side of the border. If you relinquish them, it's difficult or impossible to get them back if you're not living in the country.

As a Canadian living in the US, I find there's a small but steady trickle of incidentals for which my Canadian bank account or credit card is very useful.
Very true, Maggie, and keeping the CC open keeps the credit history nice and fresh, should he return to the US later. Unless somebody in Canada has started opening accounts with my SIN, I presume that my Can credit history kicks butt now!
I expected to file US taxes - just wanted to make sure this didn't result in getting double taxed on my Canadian income. I really just want these US accounts open to pay for my XM radio, paypal purchases, finish paying student loan, football tickets, etc... So with no downside I think I'll keep that account open. I plan to liquidate my brokerage accounts my last week here...but it will be great to keep that US bank account and credit card open.

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