oakwoods

I moved to Montreal from US in 2006, and am no longer a resident of US. In 2007, I sold some US NYSE stocks (this was a stock option that my company - a Canadian subsidiary of a US company, granted to me). I also have some interest yielded from my bank account that is still in US. I need your suggestion on the following questions:

1. Usually the broker should deduct the standard amount from the earning of the US stocks owned by a non-US-resident, and the stock owner does not have to file the tax with US Interval Revenue Service. In my case, the US broker send all the earning to me without any deduction, and the report summary uses my Canadian SIN number, not the US SSN number since I am no longer a US resident. How do I deal with the tax filing with US government?

2. For the bank interest, my understanding is that I don't have to pay tax as a foreigner who is not living in US, right? I had to pay tax for the interest when I lived in US.

If I need to pay tax for either of above, it is just the federal IRS, not with the state where the bank is located, right?

Your advice is greatly appreciated.

红星闪闪

if you are not US citizen, you can forget about paying US tax. as you lived in canada during 2007. you pay everthing here.

oakwoods

Thanks for your reply.

You are right that I need to pay federal/provincial tax in Canada for these sources of income, but I think I may still need to worry about the tax that is owed to US government as that income is sourced from US. For the earning from the stock sale, I am quite positive that usually the broker does the standard deduction if the owner is a foreigner who does not live in US, in which case no tax filing is necessary. In my case, I may still owe the amount of the standard deduction. As for the interest from my bank account there, I need to make sure that I do not need to pay any tax to US.

红星闪闪

ok
the 2 tax systems work differently.

in Canada, as long as you live here, you 've gotta pay tax. who's liable is based on residential status. not immigration status.

if you are in US, you will pay tax as a foreigner. and if you are a US citizen, no matter where you are you have to report to IRS. neither are you the case.

so what you should do is to report CRA and quebec for the income you earned as foreign income. for the stock you will have to report capital gain, expressed in Canadian dollar, which could resoult in capital loss due to flutuation of exchange rate.

got it?