US resident with Canadian Bank Acct

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Topic Author
newyorker
Posts: 50
Joined: Sun May 17, 2020 7:59 am

US resident with Canadian Bank Acct

Post by newyorker » Tue Jun 30, 2020 12:00 am

Hi Guys,

I am a US resident (Canadian but lives in US) and work part time in Canada across the border. I did all my taxes but the money I made in Canada is now saved in my Canadian bank account (around 200k)

I heard I have to let IRS know that I have a foreign bank acct. How should I proceed? I plan to quit my job soon. Should I simply close all my Canadian accts so that I dont have to deal with this headache?

leviathan
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Joined: Tue Jul 09, 2019 3:03 pm

Re: US resident with Canadian Bank Acct

Post by leviathan » Tue Jun 30, 2020 5:20 am

You have to do 2 things for the amount (200k)
1) FBAR
https://www.irs.gov/businesses/small-bu ... ounts-fbar
This is to treasury dept., not to IRS, separate from tax return. You can do E-filing.
2) Form 8938 as a part of a tax return.

I would move all the money to US account if I were you.

Topic Author
newyorker
Posts: 50
Joined: Sun May 17, 2020 7:59 am

Re: US resident with Canadian Bank Acct

Post by newyorker » Wed Jul 01, 2020 10:50 pm

leviathan wrote:
Tue Jun 30, 2020 5:20 am
You have to do 2 things for the amount (200k)
1) FBAR
https://www.irs.gov/businesses/small-bu ... ounts-fbar
This is to treasury dept., not to IRS, separate from tax return. You can do E-filing.
2) Form 8938 as a part of a tax return.

I would move all the money to US account if I were you.


Thank you sir. I assume my accountant is supposed to do form 8938 right?

Topic Author
newyorker
Posts: 50
Joined: Sun May 17, 2020 7:59 am

Re: US resident with Canadian Bank Acct

Post by newyorker » Wed Jul 01, 2020 10:51 pm

leviathan wrote:
Tue Jun 30, 2020 5:20 am
You have to do 2 things for the amount (200k)
1) FBAR
https://www.irs.gov/businesses/small-bu ... ounts-fbar
This is to treasury dept., not to IRS, separate from tax return. You can do E-filing.
2) Form 8938 as a part of a tax return.

I would move all the money to US account if I were you.

Also wondering if i can store Canadian dollar in US bank acct. usd/cad is so bad right now that i dont want to exchange yet.

Grt2bOutdoors
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Location: New York

Re: US resident with Canadian Bank Acct

Post by Grt2bOutdoors » Wed Jul 01, 2020 11:01 pm

newyorker wrote:
Wed Jul 01, 2020 10:51 pm
leviathan wrote:
Tue Jun 30, 2020 5:20 am
You have to do 2 things for the amount (200k)
1) FBAR
https://www.irs.gov/businesses/small-bu ... ounts-fbar
This is to treasury dept., not to IRS, separate from tax return. You can do E-filing.
2) Form 8938 as a part of a tax return.

I would move all the money to US account if I were you.

Also wondering if i can store Canadian dollar in US bank acct. usd/cad is so bad right now that i dont want to exchange yet.
See if this might work for you? https://www.tiaabank.com/media_library/ ... rrency.pdf
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

hmw
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Re: US resident with Canadian Bank Acct

Post by hmw » Wed Jul 01, 2020 11:54 pm

I would keep the accounts in Canada if you work there part time and you want to keep Canadian dollars.

The reporting requirements to IRS and to the US treasury (FBAR) are quite easy after you do it once.

Happy Canada Day

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mrspock
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Re: US resident with Canadian Bank Acct

Post by mrspock » Thu Jul 02, 2020 12:11 am

200k eh? Norbit Gambit is your friend if you want to convert it without currency conversion fees. If you want to keep in CAD, the only bank in the US that might have a clue with Canadian funds is TD Bank "America's Most Convenient Bank" :D . Wells Fargo, B of A, Chase.... they will stare at you like you are from Mars. TD on the other hand, should let you hold it in a US based account but in CAD currency, freeing you from the shackles of FATCA (which isn't actually that big a deal).

hmw
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Re: US resident with Canadian Bank Acct

Post by hmw » Thu Jul 02, 2020 12:20 am

mrspock wrote:
Thu Jul 02, 2020 12:11 am
200k eh? Norbit Gambit is your friend if you want to convert it without currency conversion fees. If you want to keep in CAD, the only bank in the US that might have a clue with Canadian funds is TD Bank "America's Most Convenient Bank" :D . Wells Fargo, B of A, Chase.... they will stare at you like you are from Mars. TD on the other hand, should let you hold it in a US based account but in CAD currency, freeing you from the shackles of FATCA (which isn't actually that big a deal).
I had TD bank when I lived in MA. They were pretty clueless when dealing with Canadian accounts.

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mrspock
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Re: US resident with Canadian Bank Acct

Post by mrspock » Thu Jul 02, 2020 12:29 am

hmw wrote:
Thu Jul 02, 2020 12:20 am
mrspock wrote:
Thu Jul 02, 2020 12:11 am
200k eh? Norbit Gambit is your friend if you want to convert it without currency conversion fees. If you want to keep in CAD, the only bank in the US that might have a clue with Canadian funds is TD Bank "America's Most Convenient Bank" :D . Wells Fargo, B of A, Chase.... they will stare at you like you are from Mars. TD on the other hand, should let you hold it in a US based account but in CAD currency, freeing you from the shackles of FATCA (which isn't actually that big a deal).
I had TD bank when I lived in MA. They were pretty clueless when dealing with Canadian accounts.
Well never mind then :) . HSBC would be my 2nd choice then, they are pretty internationally minded and do a good deal of business in Canada.

hmw
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Joined: Sun Mar 02, 2014 11:44 am

Re: US resident with Canadian Bank Accti

Post by hmw » Thu Jul 02, 2020 12:39 am

mrspock wrote:
Thu Jul 02, 2020 12:29 am
hmw wrote:
Thu Jul 02, 2020 12:20 am
mrspock wrote:
Thu Jul 02, 2020 12:11 am
200k eh? Norbit Gambit is your friend if you want to convert it without currency conversion fees. If you want to keep in CAD, the only bank in the US that might have a clue with Canadian funds is TD Bank "America's Most Convenient Bank" :D . Wells Fargo, B of A, Chase.... they will stare at you like you are from Mars. TD on the other hand, should let you hold it in a US based account but in CAD currency, freeing you from the shackles of FATCA (which isn't actually that big a deal).
I had TD bank when I lived in MA. They were pretty clueless when dealing with Canadian accounts.
Well never mind then :) . HSBC would be my 2nd choice then, they are pretty internationally minded and do a good deal of business in Canada.
I think the OP would have better luck asking for cross border service from Canada. I am sure both TD and RBC have such services and can hook you up with someone in the US who is familiar with Canadian accounts. Obviously TD has a very large US presence in the northeast. But the staff at TD in the NE were staff from old Bank North and an average branch manager would not have any clue about Canadian accounts. We have dealt with RBC cross border service and they were located in FL.

Valuethinker
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Re: US resident with Canadian Bank Acct

Post by Valuethinker » Thu Jul 02, 2020 3:15 am

newyorker wrote:
Tue Jun 30, 2020 12:00 am
Hi Guys,

I am a US resident (Canadian but lives in US) and work part time in Canada across the border. I did all my taxes but the money I made in Canada is now saved in my Canadian bank account (around 200k)

I heard I have to let IRS know that I have a foreign bank acct. How should I proceed? I plan to quit my job soon. Should I simply close all my Canadian accts so that I dont have to deal with this headache?
Do not close the Canadian bank account. You won't be able to open one again easily without a Canadian address. Keep $1500 in it or whatever the minimum is for no chequing charges, and use your debit card when you are visiting friends and family in Canada. That's what I do.

Also hard to get paid in Canada without a Canadian bank account?

I do not envy you the tax issues arising from work income on both sides of the border. I really don't. CCRA & IRS? Uggh...

I know that California, at least, does not recognise Canadian retirement accounts.

Remember to keep an up to date will in both jurisdictions.

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