Personal Investment & Financial Planning Q`s/Speak or not to speak to the IRS


QUESTION: Hello John:

I'm a Canadian who has been working/living in the U.S. for the past 20 plus years.  I've been paying my yearly U.S. Income taxes during that time.  I'm shortly planning to return to Canada to be closer to my aging folks.  I know that I will be eligible for American Social Security when I turn 65.  When I leave do I need to inform the IRS that I'm no longer residing in the United States and that I will no longer be submitting yearly income taxes.


ANSWER: Hi Howard. A couple of quick questions; 1) are you currently a citizen of the US as well as Canada? 2) will you have any other income sources from the US besides social security, 3) will you own any property (real estate, investment accounts, etc) in the US? If the answer to any of these question is yes, then generally speaking, you will still be required to file a US income tax return even if you do not owe any incomes taxes.

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QUESTION: Dear John:

No. I am not a U.S. citizen, but I do have some IRA's and a stock market account with a discount American brokerage company.

I guess if I had to, I could do the American income taxes, but as I'm no longer in the U.S., I don't want to be obligated to buy Obama care or any other American insurance as I'm covered in Canada.

Please advise.


Hi Howard,

Below is a link to the IRA website which discussed taxation of nonresident aliens. Whether you actually have to file a tax return in the US is dependent on specific factors. In any instance, my understanding of the US and Canadien tax treaty is that you will not have to pay income taxes to both countries on the income being generated by your US investments as you will receive an applicable tax credit to offset this. Since I am not a CPA, it is difficult for me to comment in more detail than this as I don't want to offer the wrong advice. I hope this helps.

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John D Smith, CFP


I can answer detailed questions regarding mutual fund investing, retirement planning, education planning and related comprehensive wealth management and investment concerns.


I have been providing fee only investment management and comprehensive wealth management services for the past 19 years.

I have a degree in Financial Planning & Counseling and I am also a Certified Financial Planner practitioner.

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