Canadian & U.S. Tax Issues
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.
|
|
|
|
|
|
|
|
|
|
 |
|
|
|
Page Last Reviewed or Updated: December 24, 2009