Tuition Question?

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TaxGuruz
Posts: 1
Joined: Sat Mar 21, 2020 6:19 pm

Tuition Question?

Post by TaxGuruz » Sat Mar 21, 2020 6:28 pm

Hey, hope everyone is staying safe.

Question for ya'll.

Left California in July of 2019 and went to Canada.

Filing US as a resident and Canadian as part year in.

Ended getting a scholarship and a tuition slip in Canada.

Question is how to report this in the US.

Do we pick up both the scholarship income and tuition deduction in the US. I've understood scholarship income isn't really taxable in both the US and Canada.? Do we have to do a treaty disclosure for this?

What about the tuition deduction, its for a masters program at U of T. If we pick up in the US, aren't we getting the deduction twice once in Canada and once in the US.

Thanks!

Ron.Henderson
Posts: 39
Joined: Sun Jan 06, 2019 2:24 pm

Re: Tuition Question?

Post by Ron.Henderson » Sat Mar 21, 2020 6:54 pm

If you are planning to stay in Canada, consider as your approach not declaring anything to the IRS that it can't discover, so nothing beyond interest on bank accounts reported under FATCA. The US will have no record of any Canadian scholarship or other income sources.

nelsona
Posts: 16184
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Tuition Question?

Post by nelsona » Mon Mar 23, 2020 8:09 pm

This is defined as under reporting.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Ron.Henderson
Posts: 39
Joined: Sun Jan 06, 2019 2:24 pm

Re: Tuition Question?

Post by Ron.Henderson » Mon Mar 23, 2020 10:21 pm

Yes of course. But if a person is going to stay in Canada, best they minimize the information they pass on to the IRS. Ideally, stop altogether once they acquire Canadian citizenship.

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