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I am a resident of Canada and am receiving US social security benefits. How do I avoid double taxation, since I am paying on both US and Canadian returns in TurboTax.
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I am a resident of Canada and am receiving US social security benefits. How do I avoid double taxation, since I am paying on both US and Canadian returns in TurboTax.
See IRS Publication 597 Information on
the United
States–Canada
Income Tax
Treaty page 3 - https://www.irs.gov/pub/irs-pdf/p597.pdf#page=3
U.S. social security benefits paid to a resident of Canada are taxed in Canada as if they were benefits under the Canada Pension Plan, except that 15% of the amount of the benefit is exempt from Canadian tax.
You would not include your US Social Security benefits on a US federal tax return when those benefits are being reported on the Canadian tax return.
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I am a resident of Canada and am receiving US social security benefits. How do I avoid double taxation, since I am paying on both US and Canadian returns in TurboTax.
I am a Canadian and live in Canada and receive a US pension from a hospital I worked at in the US and Social Security. Should I be leaving these of my US federal tax return when those benefits are being reported on the Canadian tax return?
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I am a resident of Canada and am receiving US social security benefits. How do I avoid double taxation, since I am paying on both US and Canadian returns in TurboTax.
- If you receive a pension from the United States, you must include it in your Canadian tax return.
- Due to the tax treaty between the two countries, you can deduct any U.S. taxes paid on your pension, as well as 15 percent of any U.S. Social Security benefits.
- If you have been receiving U.S. Social Security benefits continuously since 1995, or if you are receiving death benefits for a spouse, you may be eligible for a 50 percent deduction.
- Canadian residents pay taxes on these benefits only to Canada.
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I am a resident of Canada and am receiving US social security benefits. How do I avoid double taxation, since I am paying on both US and Canadian returns in TurboTax.
Thanks for your response. I was wanting to know what is necessary to fill out on my United States 1040 Individual Tax Return as far as income? On line 4c they ask for your Pension benefit and line5a they ask for Social Security Benefits. Would I just leave these blank? Seeing I am claiming them on my Canadian Tax return. If so should I still send them copies of my 1099-R tax forms?
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I am a resident of Canada and am receiving US social security benefits. How do I avoid double taxation, since I am paying on both US and Canadian returns in TurboTax.
Yes, you would leave line 4c Pension benefit and line 5a Social Security Benefits blank. As JohnB5677 mentioned Canadian residents pay taxes on these benefits only to Canada.
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I am a resident of Canada and am receiving US social security benefits. How do I avoid double taxation, since I am paying on both US and Canadian returns in TurboTax.
where on the Canadian tax form should the tax exemption be entered?
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I am a resident of Canada and am receiving US social security benefits. How do I avoid double taxation, since I am paying on both US and Canadian returns in TurboTax.
I finally got a response from the IRS I was able to avoid double taxation and wasn`t taxed for my Pension and Social Security on my 2019 US Tax Return. Would I be able to go back and amend previous years' taxes where I paid taxes on my US and Canadian taxes?
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