Anyone who holds Dual US-Canadian Citizenship?

[Savak]

Is there any benefit? What are the pros and cons?

My dad just got his Canadian Citizenship last week and he is now debating whether he should now focus on fulfilling the residency requirements of his US Green Card or he should just give up the US Green Card rather than go through the hassle involved in getting it i.e. the requirement to stay in the US 6 months every year.

I understand a lot of people are now renouncing their US Citizenship, Green Card especially those individuals who do not live in the US because they are fed up with the cumbersome process of filing US tax returns every year and do not feel the need to file taxes of a country that they do not live in and have no intentions of living in.

However life has taught us that when you have something in hand at this moment, you should not let it go to waste at all. For e.g. my parents used to live and work in the UK in the early 80's where my elder brother was born. Had they stayed for another 8 months, they would have been eligible to apply for UK Citizenship, passports at the time but my mother was feeling very home sick and she didn't like living in a Western Country and both my folks at the time were off the opinion "What do we need a western passport for, a UK passport for?"

Well my dad still points that out to me as one of the biggest mistakes he made in his life and how he regrets it and always recommends to us i.e. his kids not to make the same mistake as they did.

Anyways, I will be interested in hearing from people about this.

 

[Bilal_103]

If he doesent plan on living in the us or working there he should be fine with the Canadian citizenship.

 

[ahsan17]

It would be a mistake to get US citizenship if you do not plan on living there in the long term, because as you mentioned you have to pay US federal taxes even if you have no other connection to the US besides the citizenship (i.e. don't even live or work there). Besides that, the only benefit could be being able to enter US without getting harassed as much as you would with a Canadian passport.

 

[Savak]

It would be a mistake to get US citizenship if you do not plan on living there in the long term, because as you mentioned you have to pay US federal taxes even if you have no other connection to the US besides the citizenship (i.e. don't even live or work there). Besides that, the only benefit could be being able to enter US without getting harassed as much as you would with a Canadian passport.

Actually their plan is not to live in Canada either in the long run. The real plan is to divide the Winters in Pakistan and the Summers in Canada/US.

The real question is whether the cost of filing annual US Tax returns and having to pay $thousands to accountants and lawyers worth it given that the US offers 10 times more employment and business opportunities vis a vis Canada.

 

[Pakistanian]

I have many people in my family like that, the younger ones moved to America permanently cause of the economy while the older ones stayed there cause of healthcare and benefits for seniors.

 

[slipcatch]

You can’t be on three different ship at the same time.

Not only you’ll have to pay tax but as a US citizen, if you were to open an account in a foreign country then even that info can’t be obscure from IRS, especially if it’s Canadian bank or property. And that is coming from personal experience.

If your parents will not have any income in Canada then they have nothing to worry about. But if they will then they will required to pay US income tax.

I don’t understand the regret part, if you aren’t planning or want to live in a certain country then why go through the headache. As Canadian they’ll be able to visit US and UK on Canadian passport without Visa.

To be honest it is the easiest decision to make. Just ask yourself “ where do you want to live for the rest of your life”.

Pros and cons are dependent on personal preference. What might be pro for me may not be for you.

 

[HussainRx8]

Actually their plan is not to live in Canada either in the long run. The real plan is to divide the Winters in Pakistan and the Summers in Canada/US.

The real question is whether the cost of filing annual US Tax returns and having to pay $thousands to accountants and lawyers worth it given that the US offers 10 times more employment and business opportunities vis a vis Canada.

Is he retired? And it doesn't costs thousands to perform a tax return.

 

[ahsan17]

Actually their plan is not to live in Canada either in the long run. The real plan is to divide the Winters in Pakistan and the Summers in Canada/US.

The real question is whether the cost of filing annual US Tax returns and having to pay $thousands to accountants and lawyers worth it given that the US offers 10 times more employment and business opportunities vis a vis Canada.

I was specifically focusing on your dad's situation. For someone in their youth, you should definitely explore getting US citizenship as like you mentioned it grants you a lot more career opportunities, higher income (at least in certain sectors) and higher purchasing power. In fact, at that age you should jump directly to US citizenship if you can (instead of living in Canada first) unless it's for family reasons or for getting cheaper education in Canada.

If it doesn't work out and you end up moving out of the US permanently, you can renounce US citizenship and not have to pay taxes.

 

[offstump]

It’s a common misconception that you have to “pay” taxes in both countries. Canada and the US have a tax treaty so dual citizens are not double taxed. True, you have to file taxes in both countries but you will receive a credit one way or another.

 

[ahsan17]

It’s a common misconception that you have to “pay” taxes in both countries. Canada and the US have a tax treaty so dual citizens are not double taxed. True, you have to file taxes in both countries but you will receive a credit one way or another.

True, I had forgotten about that for a second. Although that only applies to income you make in either country. Income from a third country is still taxable by IRS however. I also don't know about capital gains tax earned in Canada while living in Canada as a US citizen - that is something that I'd need looking at.

 

[Savak]

Is he retired? And it doesn't costs thousands to perform a tax return.

US tax returns are more complicated then Canadian Tax returns, loads of filing requirements and I know for a fact that the accounting firm MNP in Canada, their cross border team charges a minimum of $2,500 for filing a US tax return.

For a Canadian Tax return the regular prices are some where between $400-600 but the most I have seen charged is $3,000 to people with all sorts of diverse income.

 

[Savak]

I was specifically focusing on your dad's situation. For someone in their youth, you should definitely explore getting US citizenship as like you mentioned it grants you a lot more career opportunities, higher income (at least in certain sectors) and higher purchasing power. In fact, at that age you should jump directly to US citizenship if you can (instead of living in Canada first) unless it's for family reasons or for getting cheaper education in Canada.

If it doesn't work out and you end up moving out of the US permanently, you can renounce US citizenship and not have to pay taxes.

Actually my folks want me to aim for the US, I unfortunately aged out on their 2002 application which was finally accepted in 2015. My elder brother and bhabi just became US Citizens while my sister and parents have US green cards. My sister just recently got engaged to a US citizen and is definitely going to be living in the US in the long run.

My dad at this point in time is not a hundred percent sure about his future plans but he definitely will not give up working. He is thinking of extending his 5 year contract with a Canadian Hospital but even after that, even if he retires, he will not completely give up working and he wishes to become a self employed consultant. He travels to the US a lot anyways.

Our US relatives are advising both my mom and dad not to let go off the opportunity to get the US passport because a green card can be easily rescinded, taken away and is not really a substitute for a passport.

 

[Savak]

It’s a common misconception that you have to “pay” taxes in both countries. Canada and the US have a tax treaty so dual citizens are not double taxed. True, you have to file taxes in both countries but you will receive a credit one way or another.

Lol that tax treaty is not as simple, an accountant will still charge a hefty amount for doing both Canadian and US tax returns. And even for the US tax return, that accountant has to not only be well versed with the US federal tax rules but also with the state and municipal tax rules as well.

 

[slipcatch]

Actually my folks want me to aim for the US, I unfortunately aged out on their 2002 application which was finally accepted in 2015. My elder brother and bhabi just became US Citizens while my sister and parents have US green cards. My sister just recently got engaged to a US citizen and is definitely going to be living in the US in the long run.

My dad at this point in time is not a hundred percent sure about his future plans but he definitely will not give up working. He is thinking of extending his 5 year contract with a Canadian Hospital but even after that, even if he retires, he will not completely give up working and he wishes to become a self employed consultant. He travels to the US a lot anyways.

Our US relatives are advising both my mom and dad not to let go off the opportunity to get the US passport because a green card can be easily rescinded, taken away and is not really a substitute for a passport.

Since you have explained in detail then he shouldn't give up on getting US passport.

But to answer to your original question, what is pro for me may not be for your family.