Wages Paid to Employees of Foreign Governments and Internati

[nanic]

Exemption Under Tax Treaty
If you are from a country that has a tax treaty with the United States, you should first look at the treaty to see if there is a provision that exempts your income. The income of U.S. citizens and resident aliens working for foreign governments usually is not exempt. [u]However, in a few instances, the income of a U.S. citizen with dual citizenship may qualify.[/u] Often the exemption is limited to the income of persons who also are nationals of the foreign country involved.

Does this apply to the Canada-US tax treaty?

[nelsona]

Please cite your reference when quoting.

[nelsona]

But, yes, Article XIX applied to Cdn citizens working for the Cdn (or other political subdivision) governmet shall only be taxable by canada and not by IRS.

Note that this does not prevent the individual States from taxing work doen in its state, as they are not bound by treaty.

[nanic]

The source of my quote is the IRS web-site.

Does this mean that I do not need to file a 1040 or other IRS paperwork? I am a dual Canadian-US citizen and work for the Canadian Federal government in Canada.

[nelsona]

Well, you have to file a 1040 of course, and then exclude the income by treaty, on form 8833 citing the Article above.

You still have to report all other income on 1040 as well.

It doesn't help you much, since you are in Canada and will be fully taxed there. It is really designed for Cdns in US, so that they don't have any US tax to pay on this income.

[nanic]

Thanks for the reply. @#$%% I was hoping to get exempted from having to fill out all of the annual paperwork with the IRS.

Oh well no such luck I guess.

[nelsona]

Even if you didn;'t earn a penny, you would still have to comply with all other aspects/duties of US citizen