The benefit from Canada Pension Plan is reported under TurboTax Social Security Section. Here are the steps:
In TurboTax online,
- After sign into your account, select Pick up where you left off
- In the Search box , at right upper corner, type in SSA-1099 , then Enter
- Select the 1st choice on the list - Jump to SSA-1099
- On screen, Social Security Benefit-Did you receive any Social Security benefits ? select Yes and Continue
- Next screen, Tell Us About the Benefits You Received, enter information
According to IRS sources,
The taxation of payments received from Canadian retirement programs that are similar to the U.S. Social Security system receive special tax treatment due to an income tax treaty between the United States and Canadian governments. The way this income is taxed depends on the recipient’s residence.
The 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) and who is also a resident of Canada, the benefits are taxable only in Canada.
TurboTax program does not automatically convert pension income from Canadian dollars to US dollars, please use the attached tool to convert.
https://www.oanda.com/currency/converter/
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