Question:
Is the Guaranteed Income Supplement paid to a US PR resident in
Canada
taxable on his/her US tax return?
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If you are living in Canada, no part of FICA (Social Security).
OAS, CPP or the GIS is taxable in the US under Article XVIII(5)
of the US / Canada Income Tax Convention as of Dec 1, 1995.
(there was a retroactive change made in about July 1997 to that
effect.
And, of course, if you are living in the States, everything is
subject to US tax and you should not be getting the GIS so it
would not be taxable in the US.
And, of course, number 2 - the GIS is not taxable in Canada
either but because it is clawed back as your income increases,
the clawback is extreme taxation in and of itself.
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David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa
Specialists
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 10 PM 7 days a week Vancouver (LA)
time - (please do not fax or phone outside of those hours as
this is a home office)
email to taxman at centa.com
www.centa.com www.david-ingram.com
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