Spousal Support

YankCanuck · Post by **YankCanuck** » Sat Feb 14, 2015 2:13 pm

If I live in the US but collect spousal support from a Canadian resident, is this income reported in Canada?

nelsona · Post by **nelsona** » Sat Feb 14, 2015 5:08 pm

By careful planning, your alimony could be tax-free to you, and tax-free to your ex.

It requires specific wording in your divorce agreement.

I'll let you read about it:

http://gedeonlawcpa.com/does-a-us-resid ... -resident/

YankCanuck · Post by **YankCanuck** » Sun Feb 15, 2015 8:24 pm

Thank you for confirming. My agreement quotes the US IRS Code, Seection 71 (1)(B) stating that the payments are not includable in gross income and not allowable as a deduction under Section 215.

nelsona · Post by **nelsona** » Mon Feb 16, 2015 11:24 am

Perfect

YankCanuck · Post by **YankCanuck** » Wed Feb 18, 2015 2:51 pm

Would it be necessary to file a Canadian tax return if I were a US resident when receiving support in Cdn funds?

nelsona · Post by **nelsona** » Wed Feb 18, 2015 2:53 pm

No. By treaty alimony paid to US residents is not taxable in canada.

Allycat · Post by **Allycat** » Sun Mar 13, 2016 6:56 pm

where can i find out more about this "specific wording" on the gedeon website? anybody know a link? My divorce agreement is now 6 years old. Can I just get my ex to write something and get it notarized or something?

nelsona · Post by **nelsona** » Mon Mar 14, 2016 11:36 am

The IRS.

Allycat · Post by **Allycat** » Mon Mar 14, 2016 9:46 pm

I have looked extensively on the IRS website for some corroboration of this exemption mentioned on the gedeon site, but can't find anything about it.

nelsona · Post by **nelsona** » Tue Mar 15, 2016 10:15 am

Then I guess gedeon is the next place to ask.