Well guess what bit of legislation just passed in the House of Representatives today? The legislation is the ABLE Act or Achieving a Better Life Experience topbankinfo.ru. This new act uses the tax system to allow disabled people to save for their future needs. Ironically enough it sounds a lot like Canada’s Registered Disability Savings Program (RDSP).
We had seen Chuck Schumer crowing about this a month or so ago. A few of us left nasty comments reminding them that he was stealing the money from Canadians.
“Achieving a Better Life Experience” More Newspeak.
Yet unearned income such as unemployment and disability is still taxed in the U.S. on a Canadian person.
Meanwhile – the IRS has decided to ‘extend’ the treatment of countries that have not signed an IGA as being treated as if it has signed (‘agreement in substance’) one…but now will review the list monthly to decide if a country should continue to be treated as if it has an IGA in place.
Their cutesy acronyms drive me nuts.
Just further illustrates the fact that we are second-class citizens of both countries. I thought work was being done to find a treaty exemption for RDSP’s, as there is for RRSP’s. I’m sure I read it somewhere.
Interesting. Always a stick, never a carrot with this nation, isn’t it?
Another US spending program financed with Canadian money?
I notice that it took them *8 years* to come up with this legislation even when a successful model was available right next door for them to study. How long is it going to take them to adopt RBT even *if* they decide to go for it?! Yup, it’s time to donate to ADCS and give their decision-making a little push!
Thanks for the post,
Here was Neill’s find of this in August: http://isaacbrocksociety.ca/media-and-blog-articles-open-for-comments/comment-page-40/#comment-2504128, which links to the article, http://www.autismspeaks.org/advocacy/advocacy-news/schumer-urges-congress-move-quickly-tax-free-savings-plans, where comments were placed.
http://isaacbrocksociety.ca/2014/10/23/its-time/comment-page-68/#comment-2997870 is one of badger’s comments that lays out the hypocrisy.
Appreciate your highlighting this, recalcitrant!
Your observation is right on, SwissPinoy.
Sorry for reincarnating an old article but it seems more appropriate here than on the followup article which appeared today.
“Yet unearned income such as unemployment and disability is still taxed in the U.S. on a Canadian person.”
Has that actually been confirmed?
I always did report Canadian and Japanese unemployment on US tax returns, but when doing so for the last time, I noticed that it might be a mistake. The last time was when I was complying with a settlement written by the IRS, refiling and old return with a perjured declaration required by the IRS to replace the original filing with its honest declaration when I didn’t know that honesty was illegal and frivolous. Since I was perjuring, I didn’t have to investigate whether Japanese unemployment was really supposed to be declared or not, so I did declare it, and of course it had no effect since US tax was still $0.00. The IRS subsequently reneged on the settlement that it wrote, but meanwhile confirmed that my perjury complied with its requirements, but I still don’t know if I did the right thing by declaring Japanese unemployment.
IRS instructions say you should declare unemployment paid by your state.
Ontario did not pay my UIC. Tokyo did not pay my Japanese unemployment. These were paid by countries not by states.
IRS and US courts look at literal wording even more meticulously than I do. I think I probably did the wrong thing by declaring my Canadian and Japanese unemployment, but am not sure. Does anyone really know for sure?
Besides, when I received UIC, it was taxed in Canada, so US Form 1116 would wipe out US tax on it, if my US tax hadn’t already been $0.00 before that point. Unfortunately Japanese unemployment is calculated with the assumption that it will not be taxed, since Japan doesn’t tax it, but my US tax was already $0.00 before Form 1116 made the zero more zeroer.