Question:   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.

Answer:   Benefits paid under the Canada Pension Plan (CPP), Quebec Pension Plan (QPP), and Old Age Security (OAS) program to a U.S. resident, if taxable:

• Are taxable only in the United States.   
• According to the U.S. - Canada income tax treaty, taxation of these benefits is based exclusively on residence.
• 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.
• 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 Form 1040 (PDF), U.S. Individual Income Tax Return or Form 1040A (PDF).

NOTE:  Refer to Tax Topic 423 for information about determining the taxable amount of your benefits.