Canada Pension

[Pacun]

I understand that there is a tax treaty between the USA and Canada. Client worked in Canada and now lives in the US and he is receiving a pension from Canada and ss benefits from the US. I know the pension is taxable in the US but I am not sure if Canada will want some of it. I have not checked the tax treaty yet.

Where do I report this since it is not a 1099-R but rather a similar form from Canada? Line 21 properly labeled?

Client is more than 59.5 years old so penalty is not an issue.

[MargaretMort]

I have dealt with Canadian taxes off and on for several years. My best advice is to check www.cru-arc.gc.ca/tax. I have the name of someone I dealt with in Canada--don't recall precisely what for and I don't recall when but it may help, who knows. [email protected]

Another source, excellent, was Brian Levy who used to come on the chat room several years ago. The email addresses I have for him are: [email protected] or [email protected]

Hope this helps. MM

[Pacun]

Thank you for your response.

I found this but I doubt it sources.

Are the Canada Pension Plan and Canadian Old Age Security Benefits taxable? If they are, please tell me where they should be entered on Form 1040.

Benefits paid under the Canada Pension Plan (CPP), Quebec Pension Plan (QPP), and Old Age Security (OAS) program to a U.S. resident are taxable, if at all, only in the United States. According to the U.S. - Canada income tax treaty, taxation of these benefits is a residency-based issue. U.S. citizens or green card holders who reside in Canada are not subject to U.S. tax on this income.

These Canadian benefits are treated as U.S. social security benefits for U.S. tax purposes. Thus, under section 86 of the Internal Revenue Code, the portion of the benefits that is taxable will depend on your income level. If your total income is above certain limits, a maximum of 85% of your benefits will be subject to U.S. tax. Any benefit under the social security legislation of Canada that would not be subject to Canadian tax if paid to a resident of Canada is not subject to U.S. tax.

Canadian benefits that are treated as U.S. social security benefits are reported on line 20a and 20b of Form 1040, U. S. Individual Income Tax Return or line 14a and 14b of Form 1040A.

[MargaretMort]

That may be correct. It has been a number of years since I had that particular situation and I no longer remember for sure. I would call the Canada Tax people. Whenever I spoke with them they were very helpful. MM

[Pacun]

That may be correct. It has been a number of years since I had that particular situation and I no longer remember for sure. I would call the Canada Tax people. Whenever I spoke with them they were very helpful. MM

Thank you. I will try to call them.

[MargaretMort]

I just sent an email to a friend in B.C. asking her for a number or email address. I will give you the information when she sends it. MM

[MargaretMort]

Here are two numbers for Canada Revenue Agency: 1-800-959-8281 or 1-800-267-6999

email: www.cra-arc.gc.ca

My friend says there is a search button on that website where you can get info about pensions.

Hope these help. MM