http://blog.simpsonwigle.com/2010/01/double-taxation-in-us-health-care-reform/ Tax News for Owner/Managers and Their Advisers Tue, 07 Feb 2012 15:27:50 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://blog.simpsonwigle.com/2010/01/double-taxation-in-us-health-care-reform/comment-page-1/#comment-55594 David Bazar, CA, CPA Mon, 18 Jan 2010 10:39:57 +0000 http://blog.simpsonwigle.com/?p=597#comment-55594 Welcome Nathan! The result in Niemeijer is what I would have expected. The Canada-US treaty is really just the exception to a well established rule. It seems to me that private health insurance premiums will not qualify as social security taxes just because they are mandated but that they will qualify as a medical expense for Canadian income tax purposes. I can't imagine that the associated penalties would qualify for any tax relief in Canada. I wonder if US citizens resident in Canada (and elsewhere outside of the US) will be obliged under US law to purchase US medical insurance that they probably would never use. Welcome Nathan!
The result in Niemeijer is what I would have expected.
The Canada-US treaty is really just the exception to a well established rule.
It seems to me that private health insurance premiums will not qualify as social security taxes just because they are mandated but that they will qualify as a medical expense for Canadian income tax purposes.
I can’t imagine that the associated penalties would qualify for any tax relief in Canada.
I wonder if US citizens resident in Canada (and elsewhere outside of the US) will be obliged under US law to purchase US medical insurance that they probably would never use.

]]>