I moved from US to Canada earlier this year and don’t intend to move back. I have few thousand dollars in some of my savings account. I am trying to understand if I would owe taxes (interest income) considering I keep the money in the US for now? I will have no other US income to report and will be filing my Canadian taxes from next year.
Why don’t you open USD account with Canadian bank to make it simple and still without conversion…
either way you can still show income from even US with your canadian return and then file usa income tax as non-resident too.
Thanks. I was trying to understand how the process would work.
Also, how will I convert USD to CAD when the exchange rate is good in the future? Transferwise needs a US account and not a US dollar Canadian account for transfers.
Few of the big banks like Chase, BoA will let u keep US bank checking accounts open with a Canadian address. I am not sure whether they will allow you to keep your savings account open but anyways these banks pay almost nothing in savings account. Similarly, RBC and TD also have checking accounts based in US. So, you can use transferwise for these accounts.
Also, open up questrade account and you can trade in USD too. You can buy index fund or whatever meme stocks. It is actually a good idea to keep some money in USD. Many Canadians do it as well as hedge to CAD or to trade in US Stocks without worrying about conversion.