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How do I report as income a Death Benefit I received from Canada from my deceased husband's Canadian Pension Plan Benefits?
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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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Retirement tax questions
I got your answer re CPP. Thank you very much. Will it be taxable once I follow your nice clear instructions?
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I also got a separate T4 for a Survivor Benefit. Same procedure?
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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.
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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.
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Thank you for your prompt response. Much appreciated!