Moved from Canada to US in June 2024

[shubhamarora28]

Hi,

I work at Microsoft and moved from Canada to the US on June 05, 2024. I've completed more than 183 days in the US. Here are my questions:

1. I still have my accounts open in Canada and hold Microsoft shares (RSUs) in Canada that I got as part of my compensation and also shares that I got via the ESPP plan. I did not sell any of those shares and I do not have any other registered stock accounts in Canada. Do I have to pay departure tax in Canada and if yes, what forms do I need to fill out for that?

2. After moving to the US, I am receiving RSUs (in my new US stock account), that were granted to me while I was in Canada. How can I avoid double taxation and what forms do I need to fill out for that in Canada/US?

3. Since I still hold all of my old assets in Canada, do I have to report them here in the US? If yes, can you please tell me how?

4. Do I also need to file form T1135 in Canada?

5. Can TurboTax do all of these for me? If yes, how much will it cost?

[DianeW777]

The answers for the US are explained below and any questions for Canada please use the link below:

• TurboTax Canada

1. It's likely you have income on your W-2 for RSUs and it will be reported when you enter your W-2. You will add that amount to your cost basis so that when you later sell the RSUs it will have a higher cost basis. Ask in the Canada forum about the departure tax.
2. If you are also taxed in Canada on your RSUs received while a resident there, you will use the foreign tax credit or a deduction if you itemize your deductions.
   1. Where do I enter a foreign tax credit (Form 1116) or deduction?
3. As long as you hold the assets there is nothing more to report. Once you sell them there will be a taxable event.
4. Please refer to the link above for Canada questions.
5. TurboTax will do all of the US tax return.  The fee will vary depending on which software you choose.
   1. TurboTax Products (Review Online and Desktop by making your selection) 
      1. For TurboTax Online you will need TurboTax Online Premier
      2. Check the pricing on the same page depending on whether you would like to complete your own, or use TurboTax Assist or TurboTax Full Service.

[shubhamarora28]

@DianeW777 Thanks for your response!

 I tried loading the TurboTax Canada link that you shared but I can't find the "Ask a question" button on it.

Regarding #3, do I need to report my Canadian assets as foreign assets in the FBAR?

[DianeW777]

Let me see if this link will work for you when requesting assistance for Canada.  TurboTax Community Canada

The FBAR filing requirements are listed below: The site may not be quite ready yet to accept files just yet. Due date is April 15th.

Who must file

A U.S. person, including a citizen, resident, corporation, partnership, limited liability company, trust and estate, must file an FBAR to report:

1. a financial interest in or signature or other authority over at least one financial account located outside the United States if
2. the aggregate value of those foreign financial accounts exceeded $10,000 at any time during the calendar year reported.

Generally, an account at a financial institution located outside the United States is a foreign financial account. Whether the account produced taxable income has no effect on whether the account is a foreign financial account for FBAR purposes.