Where do enter income from Service Canada Canada pension plan

[michaebuckley50]

Go to SS

[michaebuckley50]

Turbo Tax Social Security Section

[LinaJ2018 · Accepted solution]

The benefit from the Canada Pension Plan is reported under TurboTax Social Security Section.  Here are the steps:

In TurboTax online,

1.  After sign in, select Pick up where you left off

2.  In the Search box, at the right upper corner, type in SSA-1099, then Enter 

3.  Select the 1st choice on the list - Jump to SSA-1099 /

4.  The program will take you directly to screen, Social Security Benefit-Did you receive any Social Security benefits?  select Yes to continue

This is from the IRS website:

The taxation of payments received from Canadian retirement programs that are similar to the U.S. Social Security system receives 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 received 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) who is a resident of Canada, the benefits are taxable only in Canada.

[m_chan1]

Where is the 'source' of the info re: special tax treatments?
Couldn't locate at <a rel="nofollow" target="_blank" href="http://www.irs.gov">www.irs.gov</a>
Thanks!

[NanaLana50]

I understand that I am to enter my Canadian pension plan with my social security. Is this so. The IRS directions are so confusing. 

Canada took 25% tax out of my municipal pension plan - do I report this some where??

Thanks for help

[KurtL1]

If you're a U.S. resident, you'd enter your Canadian CPP and OAS benefits as though you had received a Form SSA-1099 from the U.S. Social Security Administration.

You would then file a Form 1116 Foreign Tax Credit to eliminate the double taxation on the Canadian income.

[WT6]

If you're a U.S. resident, I'm pretty sure your Canada Pension Plan distributions are taxable in the U.S. So you would NOT try to claim a foreign tax credit with Form 1116 on this income. Similarly, if you live in Canada, your Social Security distributions from the U.S. are taxable in Canada, not in the U.S.

[jrandomwinner]

IRS Publication 915, page 6.  If you reside in the US, you pay tax to the US on CPP, OAS, and QPP.  You pay nothing to Canada.