---
title: Wealth Manager Warns US Citizens in Canada of Trump Account Tax Traps
description: A Canada-US Tax Treaty gap could expose Americans in Canada to annual Canadian tax on proposed Trump Accounts, cross-border firm Cardinal Point warns.
author: Darie Nani (Editor-in-Chief)
date: 2026-07-24T09:22:06.743Z
updated: 2026-07-24T09:33:50.959Z
canonical: https://www.sovereignmagazine.com/article/trump-account-tax-traps-us-citizens-canada
image: https://cdn.nanimediahouse.com/cardinal-point-trump-accounts-cross-border-24447.webp
categories: Markets
content_type: News
region: Canada
publication: Sovereign Magazine
access: members
schema_type: Article
---

US citizens living in Canada could lose the entire benefit of the proposed American savings vehicles known as Trump Accounts, and may even owe annual Canadian tax on them, according to Cardinal Point Wealth Management, a firm that advises families with financial lives on both sides of the border.

The accounts, introduced as part of the One Big Beautiful Bill legislation moving through Washington, are structured to offer US tax advantages for qualifying savers. For American citizens who live and file taxes in Canada, those advantages may dissolve the moment funds cross the jurisdictional line.

The core problem is a gap in the Canada-US Tax Treaty. Without explicit recognition of the accounts' deferred or tax-free status, the Canada Revenue Agency could treat any income or gains accumulating inside one as fully taxable in the year they are earned, rather than deferring that liability to withdrawal as US rules intend. The mismatch would effectively eliminate the account's core benefit for anyone living on the Canadian side of the border.

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