NSERC taxation citizenship puzzle

[fishtank]

Hello, 

 

So I have a bit of a puzzle that I am having difficulty finding answers to, and was hoping someone else might be in a similar situation and have answers.

 

I am a dual citizen (Canada/US), residing in Canada, receiving an NSERC scholarship for my doctoral research. As a US citizen residing abroad (citizenship is through a parent, I was born in and have only ever liven in Canada) I am still required to file US taxes each year, which I have been doing.

 

I am only required to pay US taxes on income that is not taxed in Canada. 

 

Scholarship income is not taxed in Canada, so I am trying to determine if this means my scholarship money becomes taxable in the US, even though I am receiving it from the Canadian government for my studies in Canada. Is there an exemption for scholarship money in the US? 

 

According to this document it appears as though all amounts of scholarship earnings in excess of room, board, tuition, and incidental expenses are taxable. Is this a correct read?

 

Has anyone been in this situation?

 

Thanks!

[ohbegonia]

Hi! It's been a while for you, but I'm in a very similar situation and was wondering what you ended up doing? 

 

I'm a dual Canada-US citizen who has never earned US income until this year, and I know it's getting a little tight...