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12-29-2005 05:42 PM

tax question: Canadian studying in the US
Sorry if this sort of question has come up before (I couldn't find it though). I am a Canadian doing a PhD in Boston. I get a stipend and have a US bank account and SSN, but I pay taxes on the stipend in Canada based on a tax treaty. I am usually in Canada for 5 months per year. As it stands I have a US Neteller account hooked up to my US bank account. I am wondering whether I can/should change this to a Canadian one in order to avoid tax liability in the states. I have been playing for about a year but this is only starting to become an issue now that I'm making significant money through poker. Any advice is much appreciated.

MexKrax 12-30-2005 03:12 AM

Re: tax question: Canadian studying in the US
I am in almost the same situation as you are. I'm a Canadian citizen and I'm in the US doing a PhD in Madison. From my own surfing on the IRS website it seems that the key issue on whether or not you need to pay taxes on this income is whether or not it could be considered US sourced income. I think it's very clear that any playing you do in Canada doesn't count as US source income even if you withdraw the money into a US bank account. Whether or not your play while in the states counts as US source income is less clear. I haven't been able to find a good answer either way. The way I read to the documents that the IRS provides I wouldn't consider online poker profits US source income, but I am not a legal professional, or any kind of accountant.

TorontoCFE 12-30-2005 10:32 PM

Re: tax question: Canadian studying in the US
The Canada-US tax treaty is designed to determine which
country you pay taxes to (thus avoiding being taxed on the same income more than once).

Which country you pay taxes on depends on residency for tax purposes. This goes by(basically):
1. Which country you permanently reside in. If both:
2. Where you are a citizen.

As long as you maintain a permenant home in Canada that you intend to return to after school, then you do not have to pay US federal taxes (though you would pay Canadian federal taxes). You may depending on the state have to pay state taxes (though no provincial taxes in Canada).

Complicated bu at least it would be a minor burden.

12-31-2005 06:20 PM

Re: tax question: Canadian studying in the US
Thanks to both of you for the responses.

Does anyone know offhand about state tax in Mass.?

teddyFBI 12-31-2005 06:43 PM

Re: tax question: Canadian studying in the US
Search my previous posts for a thread that discussed this exact topic around 1 to 2 months ago.

I posted the info i found in that thread, but listen to TOrontoCFE, he's a professional.

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