# Canadian Employment Insurance and Employment Assistance on 1040/Schedule 1



## bonbonfalls (8 mo ago)

Hi, in 2020 I had two forms of reported income. The first part of the year I had Employment Insurance. The second part of the year I had funding from a Quebec program called the "Renewed Prosperity Through Greater Training". On last year's taxes the accountant included (This was the first time I had used anyone in years, as I had never been on EI or Canadian assistance before so I was unsure how to report.) their own separate sheet to show EI and then only put the calculation on Line 9 of the Schedule 1 after subtracting my Foreign Earned Income Exclusion. For this year I was basically going to do the same thing for EI, but I don't know where to put the Quebec program assistance. They show up on my Quebec tax form as "Other Income" with no designation and on my federal T4 the same. Do I combine them? 

Also, separate but related question, EI does not qualify for FEIE, and did not qualify for FTC as I received Canadian taxes back since I did not make enough mixed with education tax credits. Does the same apply for this Employment Assistance in relation to FEIE? Just confirming to be sure. I had to pay US taxes (which I've never had to pay, as I have not lived in the US for years and have never made that much money in Canada) last year on Canadian assistance, which is, well...

Any help would be greatly appreciated.


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## Harry Moles (11 mo ago)

I will only offer my standard suggestion. If you're a dual citizen without strong ties to the US or plans to return, stop filing US tax returns. Not worth the trouble and you can get into situations like this where the Canadian government is giving you money and you are sending a cut to the IRS. You are essentially helping Uncle Sam steal from Canadian taxpayers!

Presumably you did at least collect the stimulus benefit last year.


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## Bevdeforges (Nov 16, 2007)

You may want to take a look at IRS Publication 525 - Taxable and Nontaxable Income. There is a section in there that claims that "welfare" and other public assistance benefits are NOT considered reportable income for US tax purposes. Although US Federal and State unemployment benefits are taxable in the US, foreign unemployment compensation don't seem to be as they are more like "public assistance."


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## bonbonfalls (8 mo ago)

Thanks @Bevdeforges. I have read IRS Publication 525, and from what I would understand, the funding from Quebec could technically fall under the "Welfare and other Public Assistance Benefits" section. As such I could exclude. I'm just always anxious about these things, as there is always grey area here it seems in relation to reportable foreign income. And Canada put some pandemic assistance into categories that were reported as being reportable on US taxes.


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## Harry Moles (11 mo ago)

Always remember that the IRS only knows what you tell it. CRA isn't sending them copies of your T4 statements. You can safely make the executive decision that whatever form of pandemic relief you received in Canada is not considered taxable in the US, and Uncle Sam will be none the wiser.


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