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:
If the recipient is a resident of the United States—
are taxable only in the United States if the recipient is a resident of 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 green card holder who is a resident of Canada are taxable only in Canada.
Hope this will be helpful.
IRS Circular 230 Disclosure
Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.
The Best Strategy
CPA Exam Guide + Test Bank + Unlimited Exams
Want to pass the CPA exam the first time? Try a course like no other...