Scenario - A US citizen resident in Canada receives the 2008 Economic Stimulus payment in 2008. US Federal tax law says that the payments is not taxable in the US.
Would the receipt of this Stimulus payment be taxable in Canada?
2008 Economic Stimulus Rebate - Taxable in Canada?
Moderator: Mark T Serbinski CA CPA
In general, how something is taxed in one country has no bearing on how it is taxed in the other; one must look at the income in the context of each country's tax law.
Given that the stimulus is, if you look at the 2008 tax return, a tax credit (the recovery tax credit), I would simply view it as reducing my US tax.
So, it is not income, it lowers the US tax available for credit.
Given that the stimulus is, if you look at the 2008 tax return, a tax credit (the recovery tax credit), I would simply view it as reducing my US tax.
So, it is not income, it lowers the US tax available for credit.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best