Taxes for Americans in Canada (Montreal/Quebec)

[vtwxgrad]

Hi everyone!

I will either be starting at McGill or UQAM in the fall for my master's and expect around $13,000/year in funding. Does anyone know how the tax situation will work for me as an American student studying in Quebec? Will I have to pay income tax on the stipend in Quebec/Canada and/or in the US?

Thanks!

[happy little pill]

I'm Canadian and from Montreal, so I can answer your questions relevant to the Canadian context, but I can't help you as far as the US goes. If your money is partly TA/RA work, then you will be taxed on that portion but straight up scholarship money is tax-exempt in Canada. Like I said, I don't know if you'll be taxed in the US though.

 

Hope that helps!

[TakeruK]

I am not 100% certain, but in general, as an American, you will have to pay tax to the United States on all your income, no matter the source. As the above poster said though, you will not be taxed by Canada on the non-employment (i.e. the parts that is not TA/RA) part of your income. However, the tax on $13,000 per year in America will be very small!

 

Also, the Canadian tax rate are pretty low, especially for low income students so you will probably not have to pay any tax at all in Canada. You might even get extra credits/rebate. (You get $400 in non-refundable educational tax credits per month of full time studies, plus $1 for every $1 spent on tuition).

[vtwxgrad]

That's a good point that the effective tax on $13,000 will be very small. I'll need to figure out if my stipend will be considered RA funding. At McGill, the funding isn't directly attached to an advisor and is offered to everyone who receives an offer of admission. I'll look into it.

Thanks!