Dual Citizen (Can/US) - Equal Time in Both

[CanAm]

Hi Folks,

This one is good! I can't find squat on much of any of this...nor can I find anyone who can answers. Please advise and thanks!

My mother is:

1. Canadian citizen by birth, lived there for 30 years
2. US Resident Alien for 27'ish years BUT
3. Recently became a naturalized US citizen
4. No spouse; no kids that she's trucking around with her. Just her.

Situation:

1. She has elderly parents in Canada that require her assistance when she's available (more time may be needed going forward)
2. She lives in the US
3. She owns property in Canada
5. Prior to the last few years (while a US green card'er), she spent all but 2 weeks only outside of the US, the rest at her US home
4. Prior to her US naturalization and for the last few years only, she spent the minimum in the US allowed by law b/c of the aging parents.
5. She is retired, holds no job in either country, has no plans/need to, and lives on her private savings that were earned in the US prior to retirement.
6. Files a US tax return; no Canadian.

Questions:

1. What does she need to fill out to consummate on the Canadian side that she is a dual citizen of Canada & USA?
2. Where should she claim permanent residency? Does one benefit the other? Or allow for more relaxed travel between the US and Canada?
3. Does she need to spend 6 months + 1 day in one of the two countries?
4. She pays US medical insurance but coverage in Canada on that policy is horrible. Can she qualify for Canada Medicare / MSI (in Nova Scotia) while in Canada? If so, how and what does she need to give up on the US side, etc.?Because most of my reading says you can't be a PR of Canada (to get CAN Medicare while in CAN) but a PR of US also.
5. If she spends 6 months + 1 day in Canada (without *official* Canadian PR), does she need to file a Canadian tax return? Remember, she is retired and earns no wages in Canada.
6. In general, what would you do if you were US naturalized & PR, Canadian by birth, need to spend a majority in Canada to assist parents for now, and might spend more than 6 months in US one year and more than 6 months in Canada the next, etc.
7. How long can a Canadian PR spend in the US consecutively? How long in a the US over a given time period (i.e. 6 mos PER CALENDAR YEAR)?
8. Why is it sooo hard to get these answers elsewhere....and the answers not be conflicting among sources...uuurg. She wants to do the right thing but it's so difficult to figure out what the right thing is.

If all of these questions can be answered here, who in the world should she ask?!

Thanks folks! Sorry this one didn't really fit into a single forum category.

 

[PMM]

Hi

Hi Folks,

This one is good! I can't find squat on much of any of this...nor can I find anyone who can answers. Please advise and thanks!

My mother is:

1. Canadian citizen by birth, lived there for 30 years
2. US Resident Alien for 27'ish years BUT
3. Recently became a naturalized US citizen
4. No spouse; no kids that she's trucking around with her. Just her.

Situation:

1. She has elderly parents in Canada that require her assistance when she's available (more time may be needed going forward)
2. She lives in the US
3. She owns property in Canada
5. Prior to the last few years (while a US green card'er), she spent all but 2 weeks only outside of the US, the rest at her US home
4. Prior to her US naturalization and for the last few years only, she spent the minimum in the US allowed by law b/c of the aging parents.
5. She is retired, holds no job in either country, has no plans/need to, and lives on her private savings that were earned in the US prior to retirement.
6. Files a US tax return; no Canadian.

Questions:

1. What does she need to fill out to consummate on the Canadian side that she is a dual citizen of Canada & USA?

Nothing, she is a Canadian citizen and can come and go on a Canadian passport anytime she wishes

2. Where should she claim permanent residency? Does one benefit the other? Or allow for more relaxed travel between the US and Canada?

She doesn't she is a citizen of both country, her residency is where she spends the majority of her time.

3. Does she need to spend 6 months + 1 day in one of the two countries?

No
4. She pays US medical insurance but coverage in Canada on that policy is horrible. Can she qualify for Canada Medicare / MSI (in Nova Scotia) while in Canada? If so, how and what does she need to give up on the US side, etc.?Because most of my reading says you can't be a PR of Canada (to get CAN Medicare while in CAN) but a PR of US also.

If she resides in Nova Scotia after 3 months, she can apply for MSI in Nova Scotia, she has to reside in Nova Scotia for 6 months per year to remain eligible, it will only pay for emergencies outside Canada.

5. If she spends 6 months + 1 day in Canada (without *official* Canadian PR), does she need to file a Canadian tax return? Remember, she is retired and earns no wages in Canada.

Non issue, she is a citizen.

6. In general, what would you do if you were US naturalized & PR, Canadian by birth, need to spend a majority in Canada to assist parents for now, and might spend more than 6 months in US one year and more than 6 months in Canada the next, etc.

She just has to use a Canadian passport to enter Canada and the US one to enter the US. She should apply for a SIN in Canada, if she doesn't have one.

7. How long can a Canadian PR spend in the US consecutively? How long in a the US over a given time period (i.e. 6 mos PER CALENDAR YEAR)?

She is not a PR of either country, she is a citizen and can come and go as she pleases.

8. Why is it sooo hard to get these answers elsewhere....and the answers not be conflicting among sources...uuurg. She wants to do the right thing but it's so difficult to figure out what the right thing is.

If all of these questions can be answered here, who in the world should she ask?!

Thanks folks! Sorry this one didn't really fit into a single forum category.

PMM

 

[Alabaman]

The issue is not as serious as the writeup... actually I don't see any issue.

 

[toby]

On PMM’s answer to question 5, I have an additional comment. If your mother acquires too many financial tires to Canada, CRA (the tax department) might deem her to be a resident for taxpaying purposes; i.e. she would have to file a tax return in Canada, declaring her worldwide income.

Go to www.cra.gc.ca and look for IT221 R3 – to get the official opinion of CRA on whether our mother should be filing tax returns in Canada.

A major determinant of residency for taxpaying purposes is having access to a home throughout the year, whether one lives there all year or not. “Access” is the operative word. Whether living with her parents and caring for them would qualify as having access to a home is a key question, and really, the only source I would trust 100% is CRA itself. You could pay an international tax consultant, but the lowest-paid auditor at CRA can simply deny that advice out of hand, sometimes erroneously, and you still have to pay the fines or even more money hiring professional help to defend yourself. It’s not a fair contest.

So, if you want certainly, go to the same website and get NR 74, complete it, and send it in to CRA. You’ll be asked to mention secondary financial ties, such as a bank account in Canada, owning a car, having a driver’s licence, joining a health-care plan, etc. Each is not as influential in CRA’s thinking as residential ties, but if your mother accumulates too many ties, CRA might deem her a taxpayer.

CRA will advise your mother in writing.

However, since your mother is a US citizen, hence obliged to file US tax returns for ever (unless she takes the drastic and difficult task of renouncing US citizenship), she would have to seek relief from possible double taxation under the US-Canada tax treaty. That’s a lot of paperwork – two tax returns each year, and showing Canada proof of taxes paid in the US can require that you pay taxes to Canada until you get that proof, then applying to Canada for a tax refund. What a bureaucratic nightmare.

So, some people keep it simple, don’t file Canadian tax returns, and let CRA contact them. That may or may not happen. But if it does, your mother might have 3-4 years of tax returns to file, and owe lots of interest (7% these days, I recall) on taxes owed but not paid for years.

Welcome to the world of taxation.