Cross Border Tax Q&A – Giving up a Green Card and US/Canada Taxes

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Each year I help over 500 clients file their Canadian and US tax returns as well as plan for both their Canadian and US investment accounts. I also regularly help new US clients plan for their move to Canada.

Feel free to reach out via email at phil@philhogan.com or by phone or text here 250-661-9417.




Question

Hello there

My husband and I are planning on moving to Vancouver next year between October and December. My husband is a Citizen of the US and I am a Green Card holder. I’ll be receiving Social Security payment while in Canada and some investment income. I understand (from reading your website) that green card holders are also required to file a US tax return. I’m considering giving up my green card to avoid having to file both a Canadian and US tax return.

If I do give up my green card will I have to file a US return still for my social security?

Hope you can help with my tax questions.

Thanks

XXXXXX

Answer

Hi XXXXXX

The short answer to your question is no. You won’t have to file a US tax return if you relinquish your US green card. In fact, your social security income would only be taxable in Canada even if you were a US citizen or green card holder.

I would suggest that you consider keeping your green card and the possibility of naturalizing into Citizenship before entering Canada. In most cases filing a dual Canadian/US return (especially in your situation) is not terribly complicated or expensive. Considering that your husband is a citizen it would be a shame to lose your citizenship opportunity while you had it. Once you give up your green card there’s no way of getting it back.

Hope that helps

Regards

Phil Hogan, CA
250-661-9417

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Victor
Victor
10 years ago

Hi, I have held a US Green Card since 2005. I moved to Singapore two years ago and have no plans to return, so that I might relinquish my Green Card. If I do that, what is going to happen to the moneys accumulated in my Social Security Account? Shall I keep paying taxes in the US after I relinquish? I have a property in the US, what would happen to it, can I keep it?

Thanks
Victor