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.
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.
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
Phil Hogan, CA