US Taxation of Canada Pension Plan benefits

Discussion in 'Tax' started by Frank S. Duke, Jr., Feb 22, 2008.

  1. US Citizen and resident is receiving retirement benefits from Canada Pension
    Plan. Is this taxed like SS benefits? If so, how do you enter it, by
    adding it to SS income on the SSA 1099? My inclination is to treat it like
    a 1099R or perhaps just misc. income on line 21. Comments?

    If this was from the UK, would it be different?

    All freely provided advice guarantee correct or double your money back

    Frank S. Duke, Jr. CPA
    Cincinnati, OH USA

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2007) - All rights reserved. >>
    << ------------------------------------------------------- >>
     
    Frank S. Duke, Jr., Feb 22, 2008
    #1
    1. Advertisements

  2. Frank S. Duke, Jr.

    Alan Guest

    Frank S. Duke, Jr. wrote:
    > US Citizen and resident is receiving retirement benefits from Canada Pension
    > Plan. Is this taxed like SS benefits? If so, how do you enter it, by
    > adding it to SS income on the SSA 1099? My inclination is to treat it like
    > a 1099R or perhaps just misc. income on line 21. Comments?
    >
    > If this was from the UK, would it be different?
    >
    > All freely provided advice guarantee correct or double your money back
    >
    > Frank S. Duke, Jr. CPA
    > Cincinnati, OH USA
    >

    The answer is right on page 2 of Pub 597 on the treaty. Treat it
    as if it was US Social Security income just like it appears in
    Box 5 of a US SSA-1099.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2007) - All rights reserved. >>
    << ------------------------------------------------------- >>
     
    Alan, Feb 22, 2008
    #2
    1. Advertisements

  3. Frank S. Duke, Jr.

    Guest

    On Feb 22, 9:05 am, "Frank S. Duke, Jr." <> wrote:

    > US Citizen and resident is receiving retirement benefits from Canada Pension
    > Plan. Is this taxed like SS benefits? If so, how do you enter it, by
    > adding it to SS income on the SSA 1099? My inclination is to treat it like
    > a 1099R or perhaps just misc. income on line 21. Comments?
    >
    > If this was from the UK, would it be different?


    No idea, but the Canada treaty is at

    http://www.irs.gov/businesses/international/article/0,,id=169503,00.html

    Look at article 8. I'm guessing that unless the pension is Canada's
    version of social security, you would use lines 16a and 16b. Is
    Canada withholding taxes on the pension payments, or is the taxpayer
    required to pay taxes to Canada?

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2007) - All rights reserved. >>
    << ------------------------------------------------------- >>
     
    , Feb 22, 2008
    #3
  4. Frank S. Duke, Jr.

    Guest

    On Feb 22, 12:05 pm, "Frank S. Duke, Jr." <> wrote:
    >
    > If this was from the UK, would it be different?
    >
    > All freely provided advice guarantee correct or double your money back
    >
    > Frank S. Duke, Jr. CPA
    > Cincinnati, OH USA
    >
    > --

    Frank - Yes if it was from the UK it would go on line 21 and
    identified as such. The US/UK treaty is different. The canadian/US
    treaty in 1998 made it so they could treat this as US SSA and combine
    it in the same line 20a with the proper conversion rates applied.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2007) - All rights reserved. >>
    << ------------------------------------------------------- >>
     
    , Feb 22, 2008
    #4
  5. Frank S. Duke, Jr.

    Guest

    On Feb 22, 4:40 pm, "" <removeps-
    > wrote:
    > On Feb 22, 9:05 am, "Frank S. Duke, Jr." <> wrote:
    >
    > > US Citizen and resident is receiving retirement benefits from Canada Pension
    > > Plan. Is this taxed like SS benefits? If so, how do you enter it, by
    > > adding it to SS income on the SSA 1099? My inclination is to treat it like
    > > a 1099R or perhaps just misc. income on line 21. Comments?

    >
    > > If this was from the UK, would it be different?

    >
    > No idea, but the Canada treaty is at
    >
    > http://www.irs.gov/businesses/international/article/0,,id=169503,00.html
    >
    > Look at article 8. I'm guessing that unless the pension is Canada's
    > version of social security, you would use lines 16a and 16b. Is
    > Canada withholding taxes on the pension payments, or is the taxpayer
    > required to pay taxes to Canada?



    The treaty states that it will be taxed in the country of residence.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2007) - All rights reserved. >>
    << ------------------------------------------------------- >>
     
    , Feb 23, 2008
    #5
    1. Advertisements

Want to reply to this thread or ask your own question?

It takes just 2 minutes to sign up (and it's free!). Just click the sign up button to choose a username and then you can ask your own questions on the forum.
Similar Threads
  1. Harald Andres Helfgott
    Replies:
    0
    Views:
    579
    Harald Andres Helfgott
    Apr 30, 2004
  2. John Travolta
    Replies:
    0
    Views:
    622
    John Travolta
    Jun 1, 2007
  3. Prognostic Assets

    Pension Program - Global Pension Plan (GPP)

    Prognostic Assets, Oct 2, 2008, in forum: UK Accountancy
    Replies:
    0
    Views:
    1,552
    Prognostic Assets
    Oct 2, 2008
  4. Prognostic Assets

    Pension Program - Global Pension Plan (GPP)

    Prognostic Assets, Oct 2, 2008, in forum: Accounting
    Replies:
    0
    Views:
    766
    Prognostic Assets
    Oct 2, 2008
  5. Replies:
    0
    Views:
    271
Loading...

Share This Page