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Reporting canadian social security benefits

Forum|Forum|6 years ago
June 6, 2019
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where do I report any Canadian social security and Canadian pension benefits in my tax return.

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Best answer by Heather_Billings

Go to “federal taxes” then “wages and income” and then “explore on my own” Scroll down the list of income items until you find “Canadian Registered Pension Income.” This category covers Canadian Registered Retirement Savings Plans (RRSP) and Registered Retired Income Funds (RRIF). Follow the prompts and you should be in good shape. This category covers both contributions and distributions, and covers both beneficiaries and annuitants.

According to the IRS, special tax treatment applies to payments receive from the following Canadian retirement programs: Canada Pension Plan (CPP), Quebec Pension Plan (QPP), and Old Age Security (OAS). If the recipient is a resident of the United States, the benefits:

are taxable only in the United States,
are treated as U.S. social security benefits for U.S. tax purposes, and
are reported on Form 1040, U.S. Individual Income Tax Return (or Form 1040A) on the line on which U.S. social security benefits would be reported.

If the recipient is a U.S. citizen or lawful permanent resident (green card holder) who is a resident of Canada, the benefits are taxable only in Canada.

H

Heather_BillingsAnswer

Employee

Go to “federal taxes” then “wages and income” and then “explore on my own” Scroll down the list of income items until you find “Canadian Registered Pension Income.” This category covers Canadian Registered Retirement Savings Plans (RRSP) and Registered Retired Income Funds (RRIF). Follow the prompts and you should be in good shape. This category covers both contributions and distributions, and covers both beneficiaries and annuitants.

According to the IRS, special tax treatment applies to payments receive from the following Canadian retirement programs: Canada Pension Plan (CPP), Quebec Pension Plan (QPP), and Old Age Security (OAS). If the recipient is a resident of the United States, the benefits:

are taxable only in the United States,
are treated as U.S. social security benefits for U.S. tax purposes, and
are reported on Form 1040, U.S. Individual Income Tax Return (or Form 1040A) on the line on which U.S. social security benefits would be reported.

If the recipient is a U.S. citizen or lawful permanent resident (green card holder) who is a resident of Canada, the benefits are taxable only in Canada.

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lzhou172_tt

If a US resident having RRSP in Canada, when the person takes a distribution of RRSP, the Canadian government is always holding 25% of the distribution as non-resident tax. My questions are: 1) how could it be "taxed only in the United States"? Any special way leads to get the tax credit; 2) if the person reports it in the income section of RRSP, how could it be treated as social security benefits?

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ye4jim

Hi, Did you ever get an answer to this? Do they really withhold 25% tax? I thought as a Canadian living in USA all income reporting and taxing is done on my US tax return...

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ErnieS0

Show the amount actually received in US dollars @mbehrens45.

The IRS says: "You must express the amounts you report on your U.S. tax return in U.S. dollars. If you receive all or part of your income or pay some or all of your expenses in foreign currency, you must translate the foreign currency into U.S. dollars."

Foreign Currency and Currency Exchange Rates

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