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mobytruk
New Member

How do I report Canada pension and old age supplement NR4?

Where do I report CANADIAN PENSION AND OLD AGE SUPPLEMENY?
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3 Replies
LinaJ2020
Expert Alumni

How do I report Canada pension and old age supplement NR4?

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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A-
New Member

How do I report Canada pension and old age supplement NR4?

I'm a US citizen living in Canada.  I received both SS and CPP this year.  If it's true that  SS is only taxable by the US and CPP is only taxable by Canada, how do I differentiate between the two when I enter the information?  Turbotax doesn't seem to allow me to enter two SSA-1099s.  Or does the country I'm residing in have tax dibs on both retirement incomes?

DaveF1006
Expert Alumni

How do I report Canada pension and old age supplement NR4?

Do not enter the CPP information in your US return. Since you live in Canada, it is only taxable in Canada. Please read this read LinaJ2020 explanation given in this thread. Just make one SSA-1099 entry for the Us Social Security only.

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