dodiepres
New Member

How do I report as income a Death Benefit I received from Canada from my deceased husband's Canadian Pension Plan Benefits?

 

Retirement tax questions

This would be reported as Other Income.  To enter this benefit on your return, follow the instructions below:

  • Choose the Federal return and the Wages & Income tab.
  • Scroll down to Less Common Income and Show more.
  • Choose Miscellaneous Income, 1099-A, 1099-C.
  • Choose Other Reportable Income and say Yes.
  • The next screen says "Do not enter income reported on Form 1099-MISC".  This is where you will enter the description "Foreign Death Benefit" the amount you received, and who received it, if necessary.

My condolences on the loss of your spouse.

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Mopsey
Returning Member

Retirement tax questions

I got your answer re CPP.  Thank you very much.  Will it be taxable once I follow your nice clear instructions?

and

I also got a separate T4 for a Survivor Benefit.  Same procedure?

ChinShien
New Member

Retirement tax questions

Thank you for your clear instructions. Since the amount listed on my NR4 is in Canadian dollars, do I need to convert it to US dollars before inputting it? Or should I just enter the amount listed? Much appreciated.

JosephS1
Expert Alumni

Retirement tax questions

You should convert into US dollars as the current exchange rate is 1 Canadian dollar = .74 American dollars to avoid paying tax on non-existent money.  If you received 1,000 Canadian dollars you would list this under other income as $774 for the exchange rate difference.  Exchange rate is as of today.

 

xe.com currency converter

 

@ChinShien 

 

 

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ChinShien
New Member

Retirement tax questions

Thank you for your prompt response. Much appreciated!

@JosephS1