US Tax on US-C's in Canada getting child UCCB & CCTB

usc-in-canada · Post by **usc-in-canada** » Wed Mar 12, 2014 5:40 pm

How does the US Tax code treat US Citizens who are permanent residents (PR) in Canada and receive things like the Universal Child Care Benefit ( UCCB ) and the Canada Child Tax Benefit ( CCTB ) ? I want to be sure I'm doing this right.

In Canada, it appears the UCCB is a taxable benefit . But the CCTB is a tax-free benefit. (I think I have this right). Is there a treaty provision or anything that says stuff that is tax-free in Canada is also tax free on the US Return?. Or could this be counted as unearned 1099 income that the US will wack US citizens living in Canada with income tax and/or self-employment tax ?

nelsona · Post by **nelsona** » Thu Mar 13, 2014 12:16 am

The taxable portion of these is reported as govt income in US.

usc-in-canada · Post by **usc-in-canada** » Thu Mar 13, 2014 12:30 am

Thanks. To clarify, so the CCTB (not taxable in Canada) would also be not taxable on one's US Return ?

nelsona · Post by **nelsona** » Thu Mar 13, 2014 9:12 am

The taxable portion of these is reported as govt income in US.