Tax & Investment Issues (Information supplied on this topic is from experience only, and in no way reflects policies, regulations, or laws from either Manitoba or Minnesota.  We strongly advise seeking professional advise from an accountant or tax specialist who is well versed in Canadian and US tax laws both before considering your departure from Canada, and while in the USA)

General:
Here is my weakest area for trying to provide advise, so basically, I am NOT going to provide advice.  However, Cathy Steigerwald of Carver Tax Service is very well versed in Canadian taxation issues.   Be sure to tell her Neil Marriott sent you.  We fully endorse the services and knowledge that Cathy can provide you in helping you deal with RRSP election filing, special foreign account forms that need to be filed, etc.

Canadian Laws:
I have been getting a lot of e-mail from people who feel that they will be taxed in both Canada and in the USA if they elect to move to the USA.  Under certain circumstances (I believe!), this can be true.  Under most  circumstances, you can legally avoid this.  In general, here's what you need to do when you leave Canada.  I will assume for this discussion, that you are moving to the USA for an unknown period of time (could be permanent, but lets say most likely for a few years).

• Severe any income earning revenues in Canada. 
• File a NR-73: Determination of Residency Status (Leaving Canada) form, available from the Gov't of Canada, or phone from within USA or Canada, 1-800-267-5177.  You might need to fill this out once you have left Canada to prevent double taxation.  This is very important. This statement basically tells the Canadian officials that you are a NON RESIDENT of Canada.  Of course, you would only fill this out if your intention is to become a non-resident. 
• Notify revenue Canada of your change of address.  When you leave Canada in the middle of the year, you will be filing a tax return for that year's portion as a Canadian resident.  Remember also, that you want to make arrangements to buy your RRSP's BEFORE you leave Canada for the USA.  You will NOT be able to return to Canada in a few months, and walk into your bank and buy your tax deferring RRSP's after the fact.  
• Notify any previous employers of your new USA address so they can forward your current year's T-4 returns to you.  If you are contributing via your employer to a pension plan, be sure to notify them as well.  Also remember to give our your new address to any other income earning organization (such as Crocus Funds, Banks, etc).  They will also have T-4 returns for you.
• SEC rules prevent US residents (that will be you) from trading Canadian stock portfolios and Canadian residents from trading US stock portfolios. Since this rule also applies to RRSP accounts, care should be taken to ensure that your RRSP account will not require constant broker initiated transactions if you will be in the USA.  Possible alternatives include the appointment of a resident Canadian trustee, or converting the RRSP to debt instrument investments.  (There is currently a proposal in the USA to remove this restriction, thus possibly allowing Canadians living in the USA to manipulate their RRSP's while living in the USA.  Once this is announced, I will provide details.)
• For some detailed information about leaving your RRSP's in Canada after you have moved to the USA, visit Serbinski's WEB site: RRSP While in USA.  The information here can be a little technical, but if you read it a couple of times, it starts to make sense.

USA Laws:
This is where I am still in the learning stage.  Information supplied below is based on second hand information.

• Any income earned in the USA is subject to regular USA taxation.  During your USA residence period, any other "world-wide-income" is also subject to USA taxation, including any income that is earned in Canada while a USA resident.  So, if you are a part-owner of a business in Canada, or have a rental property in Canada, you may also be taxed on that income during the period you are a USA resident.  Again, consult a tax expert.  Do not believe what I am writing as the law!  This excludes any RRSPs held in Canada of course.
• The Americans do not have a exact equivalent of the Canadian RRSP.  They have a variety of tax shelters.  The most common is the "401(k)" tax shelter, which your employer sets up for you.  Another is an "IRA", or ROTH-IRA's.  Both have conditions and limitations.  Unlike in Canada, tax deferrals must be made on or before December 31st of each tax year.  Many of these 401-K plans are managed by professional money managers, and allow you to invest your pre-tax income into a variety of mutual funds, money markets, stocks, bonds, etc.  In addition, an employer (depending on how good their plan is!) may opt to contribute a percent of what you elect to contribute.  Again, this money is tax sheltered.  Like Canada, the IRS limits how much you can have put into your 401-K plan.  Money is normally deducted off your paycheques as per your specific instructions.  Your tax withholding is adjusted based on the amount you contribute.
• Like Canada, you will fill out a form when you firm start to indicate potential deductions.   In Canada these were called TD-4 forms.  Here they are called "W4" forms. 

Social Security in the USA:
An international agreement respecting social security between Canada and the U.S. sets out the rules for social security taxation for residents of one country working in the other. This agreement, also known as the Totalization Agreement, provides that a Canadian working in the U.S. on a temporary assignment (of up to 5 years) for a Canadian company is exempt from U.S. social security taxes if he remains covered by the Canada Pension Plan (CPP).

In order to prove coverage under the CPP, form CPT 56 must be completed and certified by Revenue Canada. This certified form then acts as the authority not to withhold and remit U.S. social security taxes at source from employment income. A similar exemption is available to self employed Canadian residents who work temporarily in the U.S. (Reciprocal rules are available for U.S. residents working for U.S. companies temporarily in Canada.).    However, Canadian residents employed by U.S. companies in the U.S. are not eligible for relief under the Totalization Agreement. In other words, even though you may not be eligible to ever collect any of the social security stuff (FICA) that is deducted from your cheque, you must still pay the entire shot!

RRSP's - What to do while a US Resident:
I just know I am going to get a bunch of opinions on this topic.  I have HEAVILY researched what I believe are most of the Treaty and Non-Treaty issues, and communicated frequently with both the IRS, Canadian tax specialists, and US tax specialists.

Please click the link here, as I have created a special page just for these issues.

Please feel free to contact