How do I report as income a Death Benefit I received from Canada from my deceased husband's Canadian Pension Plan Benefits?

[KittyM · Accepted solution]

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.

[Mopsey]

I got your answer re CPP.  Thank you very much.  Will it be taxable once I follow your nice clear instructions?

and

I also got a separate T4 for a Survivor Benefit.  Same procedure?

[ChinShien]

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.

[JosephS1]

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.

xe.com currency converter

@ChinShien 

[ChinShien]

Thank you for your prompt response. Much appreciated!

@JosephS1