USA - Canada Totalization Agreement Questions

Forum|Forum|1 year ago
December 4, 2024
1 reply
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Hi, I am Canadian/American (dual citizenship) living in the state of Georgia - USA.

1) If I apply for CPP (Canadian Pension Plan) and OAS(Old Age Security) under Totalization Agreement with Canada do I need to file a FBAR (FinCEN 114)?

2) Will I need to report any income from my CPP and OAS to Georgia separately?

3) Other than reporting my CPP and OAS where I enter my SSA-1099, is there any other forms or places that require it to be reported?

Thanks!

pk_

Level 15

@AndrewA87 , I am not sure I understand your question -- missing antecedents.

The totalization agreement is for the purpose of allowing participants to pay to ONLY one country viz. if an American citizen is domiciled and employed in Canada, he can choose ( under the totalization agreement between US and Canada ) to pay to only one country. Obviously that means downstream he will have to choose to get benefits from one country ( either because he contributed to that SSA system and/ or because he transferred contributions from the other system).

Is this what you are talking about ?

AndrewA87Author

Level 5

Sorry for the confusion.

I guess what I am trying to understand what is required of me reporting wise once I sign up to receive my Canadian pension that the USA - Canada Totalization Agreement allows me to have since I worked in Canada before immigrating to the USA.

I know I sign up for this when I apply for my Social Security retirement benefits. What I want to know if I have any income tax reporting responsibilities like Georgia state income taxes or any federal income tax reporting once I start receiving my Canadian pesnsion.

Thanks!

pk_

Level 15

@AndrewA87 , sorry for my confusion.

In general , when you receive govt. pension ( like Social Security or similar) , it is taxed ONLY by the "source" country. This is despite the "saving clause" which allows each country to follow/ administer its own tax rules.

Please read Article XVIII para 5 of the US Canada tax treaty ----> CANADAWEB.PDF

I will come back on this -- need to refresh my memory about the US -Canada tax treaty ( the most recent version --2008/09 ).