Cross-Border Moving Checklist

Your RRSP (and RRIF) stays in Canada. Do not collapse it on departure. Lump-sum withdrawals face 25% withholding; periodic withdrawals qualify for the treaty-reduced 15% rate under Article XVIII of the Canada-US Tax Treaty. Under Rev. Proc. 2014-55, eligible US residents receive the RRSP growth deferral automatically. the old Form 8891 is no longer required. You still report the account on FBAR and, if you exceed the threshold, on Form 8938.

Your TFSA does not close automatically when you leave Canada. However, CRA charges a 1% per month tax on any contributions made while you are a non-resident. The balance already in the account can stay. On the US side, the IRS does not recognize the TFSA as tax-exempt. any income earned inside it is fully taxable on your US return.

Provincial health insurance end dates vary widely. Ontario OHIP ends after about 212 days of absence. BC MSP ends on the last day of the month you leave. Alberta AHCIP ends 3 months after the month you leave. Quebec RAMQ ends when you establish residency elsewhere. Get private travel or bridge insurance before your provincial plan lapses.

Keep at least one Canadian account open. You will need it for CRA refunds, RRSP maintenance, and to ease a potential future return. Notify your Canadian bank of your new US address. some institutions flag accounts with foreign addresses. RBC, TD, and Scotiabank each have cross-border banking programs. For transfers, compare rates with Wise or Knightsbridge FX before using your bank's wire service.

Canada Education Savings Grants stop when the subscriber becomes a non-resident. If you close the RESP as a non-resident, you may need to repay some or all CESGs received. If you designate a Canadian resident as subscriber, the grants can continue for the beneficiary.

A Canadian license is valid for driving in most US states when you first arrive. Each state sets its own deadline for requiring a state license after you establish residency, typically 30 to 90 days. Most states accept a valid Canadian license for exchange without a full driving test.

CPP contributions stop when you no longer have Canadian employment income. You can receive CPP and OAS as a US resident. The Canada-US Tax Treaty reduces withholding on CPP and OAS payments to 15% rather than the standard 25% for US residents.

This is the single most expensive surprise for Canadians moving to the US. Any Canadian mutual funds, segregated funds, or Canadian-listed ETFs in a non-registered account become Passive Foreign Investment Companies (PFICs) the moment you become a US resident. The PFIC regime applies punitive taxation: interest charges on deferred gains calculated at the highest marginal rate, year by year. The solution is to sell these holdings before departure, or before the end of the calendar year you move if you arrive late in the year. RRSP and TFSA holdings have separate rules.

You become a US resident alien either on the day you arrive with intent to reside (green card test) or when you meet the Substantial Presence Test in the current calendar year. For most TN and H-1B workers, this is the day of arrival. As a US resident alien you file Form 1040 and report worldwide income. The portion of the year before arrival is reported on a dual-status return.

If you have work authorization (TN, H-1B, L-1, green card), apply for a Social Security Number through the SSA. You cannot apply until your visa is in hand. The SSN is required for employment, Form W-4, US bank accounts, and US tax returns. If you have US tax obligations but no work authorization, apply for an ITIN using Form W-7.

As a resident alien for tax purposes, you complete the same Form W-4 as a US citizen. Fill it out carefully to avoid under- or over-withholding. The IRS withholding estimator can help calibrate your allowances, especially in your first year when income is split between Canadian and US sources.

The Canada-US Treaty (Article XVIII(7)) lets your RRSP grow tax-deferred for US purposes, and under Rev. Proc. 2014-55 eligible US residents receive this deferral automatically. The obsolete Form 8891 is no longer required. What you do still owe each year: report the RRSP on FBAR (FinCEN 114) and, if you exceed the threshold, on Form 8938. Distributions when you eventually take them are taxable in the US.

As a US resident, you must file FinCEN Form 114 (the FBAR) if the aggregate balance of all foreign financial accounts. your Canadian bank account, RRSP, TFSA, RESP, and any others. exceeds USD $10,000 at any point during the year. FBAR is filed separately from your tax return through the FinCEN BSA E-Filing System. Annual deadline is April 15 with an automatic extension to October 15.

There is no automatic health coverage in the US. If you have employer-sponsored coverage, it typically starts at hire or after a waiting period of 30 to 90 days. ACA marketplace plans are available during open enrollment or a special enrollment period triggered by the move. Buy short-term travel or bridge insurance for any gap between your Canadian provincial plan ending and your US plan starting.

Open a US checking account as soon as you have a US address and SSN. TD Bank, RBC Bank USA, and Scotiabank-linked accounts offer cross-border banking that can ease the transition. Online options include Schwab (good for no-fee international ATM access) and Chase. Some institutions will open an account with a passport and US address while your SSN is pending, but this varies by branch.

If the total value of your foreign financial assets exceeds USD $50,000 on the last day of the tax year (or $75,000 at any point). or USD $100,000/$150,000 if married filing jointly. you must also file Form 8938 with your tax return. RRSP and TFSA accounts count toward the threshold. This is separate from the FBAR.