Tax Exemption for Canadian NSERC fellow working at a US university

stargazer · Post by **stargazer** » Sat Oct 02, 2021 12:29 pm

Hi Folks,

I am a Canadian citizen who is going to start a post doctoral job at a US university next year. My salary will be paid from two sources: my NSERC PDF fellowship and from my PI's NSF grant. N

I heard that foreign scholars and researchers get tax exemption for the first two years of their employment. Is it true? If true, then will I be getting tax exemption for the first two years of my employment?

nelsona · Post by **nelsona** » Sat Oct 02, 2021 1:01 pm

PDF
PI
NSF.

Doctor,please! Use your words!

nelsona · Post by **nelsona** » Sat Oct 02, 2021 1:09 pm

Your Cdn-sourced income (at a minimum the NSERC grant) is not taxable in US for ONE year. However, you are still Cdn resident when studying abroad, so it would be taxable in Canada. This is governed by Article XX of the tax treaty.

Once you explain what a OI's NSF is, and what immigration status you will have in US, a more elaborate answer can be given.

stargazer · Post by **stargazer** » Sat Oct 02, 2021 2:26 pm

nelsona wrote:
> PDF
> PI
> NSF.
>
> Doctor,please! Use your words!

Sorry, my bad!

PDF=Post Doctoral Fellow
PI=Principle Investigator (Supervisor)
NSF=National Science Foundation, USA

nelsona · Post by **nelsona** » Sat Oct 02, 2021 3:23 pm

I'm going to assume yoy are on "J" ststus.

All your income is reportable in Canada; your NSF income is taxable in US. Your exempt status (ie. the time in wheich you are considered non-resident is upto FIVE years.

stargazer · Post by **stargazer** » Sat Oct 02, 2021 3:58 pm

nelsona wrote:
> I'm going to assume yoy are on "J" ststus.
>
> All your income is reportable in Canada; your NSF income is taxable in US.
> Your exempt status (ie. the time in wheich you are considered non-resident
> is upto FIVE years.

If I understand your reply correctly, then I will need to pay tax to CRA on the income I will be receiving from Canada (from the NSERC Post Doctoral Fellowship). For the other part of my income, which will come from my supervisors US fund, i will not need to pay any taxes to IRS (because of the exemption). Right?

nelsona · Post by **nelsona** » Sat Oct 02, 2021 4:56 pm

Let's be clear.

Cdn (NSERC) Income: report in Canada only.
US (NSF) income: report in Canada AND US.

nelsona · Post by **nelsona** » Sat Oct 02, 2021 4:57 pm

Canada will credit any tax you pay in US towards your Cdn tax bill.

Serbinski Accounting Firms

Tax Exemption for Canadian NSERC fellow working at a US university

Tax Exemption for Canadian NSERC fellow working at a US university

Re: Tax Exemption for Canadian NSERC fellow working at a US university

Re: Tax Exemption for Canadian NSERC fellow working at a US university

Re: Tax Exemption for Canadian NSERC fellow working at a US university

Re: Tax Exemption for Canadian NSERC fellow working at a US university

Re: Tax Exemption for Canadian NSERC fellow working at a US university

Re: Tax Exemption for Canadian NSERC fellow working at a US university

Re: Tax Exemption for Canadian NSERC fellow working at a US university