Foreign Tax Credit on 1040

fresnarus · Post by **fresnarus** » Tue Apr 21, 2015 9:04 am

Nelsona-

Back in October 2004 you wrote

"I'm puzzled by the expression "covering the Canadian social security tax in certain respects". "

I will now resolve the puzzle for you: Canadian social security tax generates a US credit only to the extent set forth by the laws of the US.

-fresnarus

nelsona · Post by **nelsona** » Tue Apr 21, 2015 9:07 am

It doesn't say the "laws" of the US, it specifies the "law" , the law on double taxation relief.

No country would sign a treaty where the "laws" of one country could unilaterally supersede it. And under miscellaneaous rules, the treaty spells out exactly where the US takes (and was granted by canada) exception to the treaty.
The Treasury department has specified that Socila security taxes pais to canada are "taxes", both generally and specifically for double tax relief. I'm good with that, since they are signatories.

Anyhow, you asked how this position was reached, and there you have it.
Deal with it as you wish.

Feel free to pay someone to agree with you.

fresnarus · Post by **fresnarus** » Tue Apr 21, 2015 9:22 am

The treaty itself says the laws determine how that paragraph is administered. Treaties are free to do that. Similarly, the congress frequently writes tax code that specifies that the treasury regulations will define the implementation of said code.

You have failed to give any treaty provision to support your position, and you've drifted from insuting personal attacks to pure sophistry.

It turns out that your bluster had nothing but air behind it, as is usually the case with bluster.

nelsona · Post by **nelsona** » Tue Apr 21, 2015 9:56 am

Thanks for your time and opinion. If I've failed to convince you, so be it.

Hopefully you will be able to further contribute to this forum on a wide range of issues in future.