2555 "income earned in U.S. on business" clarifica

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
Diskdoctor
Posts: 75
Joined: Wed Apr 21, 2010 9:46 am
Location: Winnipeg

2555 "income earned in U.S. on business" clarifica

Post by Diskdoctor »

Form 2555EZ part III (same as 2555 part II line 14 or part III line 18) asks for the number of days I was in the U.S. on business. According to the instructions (see below) I understand that even though I'm payed by a Canadian company and live in Canada no matter the reason for going to the U.S. as long as I'm there because of work (for example to attend a conference or meeting) the income earned during that time is considered U.S. source and can't be excluded.

1) Is my interpretation correct?

2) How do people generally calculate that income assuming an annual salary? My thought would be to divide the number of days in U.S. on business by the total number of work days (i.e. not weekends or stat holidays) in the year and multiply it by my annual salary to get the excluded income.

<i>From 2555EZ instructions
Column (d). Enter, in U.S. dollars, the amount of income earned in the United States on business (such as meetings or conventions). Attach a statement showing how you determined the amount. Do not include this income on line 17. Even if you live and work in a foreign country, any income earned during the time spent in the United States on business is considered U.S. source income and cannot be excluded.</i>
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

1 yes
2. correct
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Diskdoctor
Posts: 75
Joined: Wed Apr 21, 2010 9:46 am
Location: Winnipeg

Post by Diskdoctor »

Thanks for the confirmation :)
Post Reply