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
YankCanuck
Posts: 12 Joined: Sat Feb 07, 2015 1:43 am
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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
Posts: 18359 Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man
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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/
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
YankCanuck
Posts: 12 Joined: Sat Feb 07, 2015 1:43 am
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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
Posts: 18359 Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man
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by nelsona » Mon Feb 16, 2015 11:24 am
Perfect
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
YankCanuck
Posts: 12 Joined: Sat Feb 07, 2015 1:43 am
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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
Posts: 18359 Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man
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by nelsona » Wed Feb 18, 2015 2:53 pm
No. By treaty alimony paid to US residents is not taxable in canada.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Allycat
Posts: 2 Joined: Sun Mar 13, 2016 6:35 pm
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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
Posts: 18359 Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man
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by nelsona » Mon Mar 14, 2016 11:36 am
The IRS.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Allycat
Posts: 2 Joined: Sun Mar 13, 2016 6:35 pm
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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
Posts: 18359 Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man
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by nelsona » Tue Mar 15, 2016 10:15 am
Then I guess gedeon is the next place to ask.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing