US-Can Tax Treaty: Government Services
Moderator: Mark T Serbinski CA CPA
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Mark T Serbinski CA CPA
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blitzloper
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Hello again Nelsona,
I have a 2010 update / question to this topic. In relation to my government service, I received compensation for travel expenses (eg. flights home for leave).
Do you think this would be included in the treaty exclusion? Should I include it in my treaty-based declaration?
"Remuneration, other than a pension, paid by a Contracting State or a political subdivision or local authority thereof to a citizen of that State in respect of services rendered in the discharge of functions of a governmental nature shall be taxable only in that State."
(As a reminder, I'm a Canadian Citizen, Canadian Resident, working for the Canadian Government. Also a US Citizen so I file US taxes.)
Thanks.
I have a 2010 update / question to this topic. In relation to my government service, I received compensation for travel expenses (eg. flights home for leave).
Do you think this would be included in the treaty exclusion? Should I include it in my treaty-based declaration?
"Remuneration, other than a pension, paid by a Contracting State or a political subdivision or local authority thereof to a citizen of that State in respect of services rendered in the discharge of functions of a governmental nature shall be taxable only in that State."
(As a reminder, I'm a Canadian Citizen, Canadian Resident, working for the Canadian Government. Also a US Citizen so I file US taxes.)
Thanks.
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blitzloper
- Posts: 18
- Joined: Sun Mar 29, 2009 11:21 am
I think I've answered my own question on this one...
Insofar as reimbursement for travel expenses would be considered a 'Fringe Benefit' by the IRS (http://www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf), it would/should normally be included in a W2 with wages.
As this amount would be included in 'government service' remuneration, I will include the amount of fringe benefits in my treaty declaration and exclude it from Line 7 of my 1040.
Insofar as reimbursement for travel expenses would be considered a 'Fringe Benefit' by the IRS (http://www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf), it would/should normally be included in a W2 with wages.
As this amount would be included in 'government service' remuneration, I will include the amount of fringe benefits in my treaty declaration and exclude it from Line 7 of my 1040.