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US Taxation of Canada Pension Plan benefits

 
 
Frank S. Duke, Jr.
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      02-22-2008, 05:05 PM
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

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Alan
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      02-22-2008, 09:31 PM
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.

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<< that may be imposed upon the taxpayer. >>
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removeps-groups@yahoo.com
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      02-22-2008, 09:40 PM
On Feb 22, 9:05 am, "Frank S. Duke, Jr." <(E-Mail Removed)> 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/intern...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?

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<< ------------------------------------------------------- >>
<< 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. >>
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ebetts3@msn.com
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      02-22-2008, 10:21 PM
On Feb 22, 12:05*pm, "Frank S. Duke, Jr." <(E-Mail Removed)> 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.

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<< ------------------------------------------------------- >>
<< 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 >>
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parrisbraeside@yahoo.ca
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      02-23-2008, 12:59 PM
On Feb 22, 4:40 pm, "(E-Mail Removed)" <removeps-
(E-Mail Removed)> wrote:
> On Feb 22, 9:05 am, "Frank S. Duke, Jr." <(E-Mail Removed)> 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/intern...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.

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<< ------------------------------------------------------- >>
<< 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. >>
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<< ------------------------------------------------------- >>
 
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