Taxability of Canada's CERB payment and the US CARES Act payment for Dual Canada/US citizens residing in Canada

April 28, 2021 - Participants Include:

 

John Richardson - @ExpatriationLaw

 

Oliver Wagner - @1040Abroad

 

For dual Canada/US citizens living in Canada it's tax time. Specifically it's time to file both Canadian and US tax returns for the 2020 tax year.

2020 was a very difficult year. Dual citizens living in Canada may have received both the Canadian CERB payment and the the US CARES Act payment.

The basic principle, as discussed in this blog post, is that the Canadian CERB payment is taxable in both the US and Canada and that the US CARES Act payment is taxable in neither the US nor Canada.

 

US citizens residing in Canada may be eligible to receive up to $3200 US dollars of relief payments from the US government. This is  your money to do with what you please!

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Thanks to Olivier Wagner of 1040Abroad.com for participating in this  podcast.