Reporting canadian social security benefits

[ptucklee]

where do I report any Canadian social security and Canadian pension benefits in my tax return.

[Heather_Billings · Accepted solution]

Go to “federal taxes” then “wages and income” and then “explore on my own”  Scroll down the list of income items until you find “Canadian Registered Pension Income.”  This category covers Canadian Registered Retirement Savings Plans (RRSP) and Registered Retired Income Funds (RRIF).  Follow the prompts and you should be in good shape.  This category covers both contributions and distributions, and covers both beneficiaries and annuitants.

According to the IRS, 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) who is a resident of Canada, the benefits are taxable only in Canada.
  

[lzhou172_tt]

If a US resident having RRSP in Canada, when the person takes a distribution of RRSP, the Canadian government is always holding 25% of the distribution as non-resident tax. My questions are: 1) how could it be "taxed only in the United States"? Any special way leads to get the tax credit; 2) if the person reports it in the income section of RRSP, how could it be treated as social security benefits?

[TuscanSicilian]

Im A Canadian who recently obtained  US citizenship. I receive OAS and Quebec retirement income. How and where  do I enter those numbers on my 1040? Also, $1.00 CAD is about $0.70 USD. How  is the value treated/exchanged?

[mbehrens45]

I receive the  equivalent of a 1099 for my Canadian Old Age and Social Security benefit.  These are also sent to IRS.  They show the Canadian Dollar amount not the amount I actually received when it is converted  to US dollars.  Do I use the amount shown on the 1099 or the amount I actually received to add to my social security amount.

[ErnieS0]

Show the amount actually received in US dollars @mbehrens45.

The IRS says: "You must express the amounts you report on your U.S. tax return in U.S. dollars. If you receive all or part of your income or pay some or all of your expenses in foreign currency, you must translate the foreign currency into U.S. dollars."

Foreign Currency and Currency Exchange Rates

[bayolive]

Because The gross Incomes (item 15 & 16) are Reported in Canadian Currency on the NR4 and NR4(OAS) Forms: reported on Canadian Revenue Agency (CRA) Tax Forms.
To be accurately reporting on IRS Form 1040-SR as SSA-1099 for both Canadian Pension Plan (CPP- NR4) & Old Age Security (OAS - NR4) in US Currency.
If you requested direct deposit into your US bank account, Report the total incomes from CPP & OAS as social security benefit (item 6a) on Form 1040-SR. sum up total (in USD) monthly deposits on your US bank (Jan-Dec) monthly checking/saving account statement, add these total $ USD amount in your SSA-1099-SM Statement.
Note: Your Canadian RRSP/RRIF minimum distribution are reported similar to IRS Traditional IRA RMD - Distribution after Age 72. Enter the amount in item # 4b Pensions and Annuities of Form 1040-SR

[bayolive]

To be accurately reporting on IRS Form 1040-SR as SSA-1099 for both Canadian Pension Plan (CPP- NR4) & Old Age Security (OAS - NR4) in US Currency.
If you requested direct deposit into your US bank account, Report the total incomes from CPP & OAS as social security benefit (item 6a) on Form 1040-SR. sum up total (in USD) monthly deposits on your US bank (Jan-Dec) monthly checking/saving account statement, add these total $ USD amount in your SSA-1099-SM Statement.

[J Robert]

When reporting canadian rrsp income how is exchange rate handled

[DanaB27]

In general, you use the exchange rate prevailing (i.e., the spot rate) when you receive the income (IRS). You can check online for exchange rates.

@J Robert

[ye4jim]

Wrong. That's for RRSPs.  You report Old Age Pension and Canada Pension Plan on OAS-1099.

[chips48]

I'm a Canadian Resident as well as US Citizen (Dual) filing US taxes.  I'm totally confused as to the correct method of entering and claiming automatic exemption (under the US-Can tax treaty) for CPP and OAS benefits received.  All the answers I've browsed seem to be focused strictly on US Residents/citizens receiving Canadian CPP and OAS benefits and treating them as US Social Security in TT.  BTW I can't find OAS-1099 in TT 2022, where is that found...or is it created and named as such as a substitute 1099-R ?

[twm50]

My wife is Canadian but US citizen now retired and has CPP and OAS reported on the NR4 forms. I have never seen a 1099-OAS or any other 1099 related to either. She gets the NR4's but they are in CAD so of little use other than a record of the CAD benefits. I just keep track of the monthly direct deposits to our US checking acct and add them up at the end of the year since they are in US funds so it eliminates having to try to figure out an exchange rate to use. You would think by now, the Canadian govt could simply show the total they deposited in US funds on the form and you would also think by now the IRS would have a separate line item for these. or at the very least, point out that the US amounts received are to be added in.

Someone once told me on these forums to just claim 85% of the total but they never explained which total or why 85% since at that time the exchange rate was well over 15%. Over the past few years the exchange rate often varies quite a bit from month to month so the only logical solution seemed to me to just track the deposits.

[DaveF1006]

Yes, this income would need to be reported as other income in your US return. The information that was relayed to you regarding reporting at 85% is false and you need to disregard this advice. Since CPP and OAS income is not social security type income like RRSP or RRIF, this must be reported as other income in your return. Here is how to report.

1. Select Federal Taxes>Wages and income>choose what you work on
2. Scroll to the bottom of the page to less common income>miscellaneous income 1099 A....select it
3. Scroll to the bottom of this page to Other Reportable Income
4. Other taxable income, answer yes 
5. Then give a brief description of the income and the amount listed.  For this, i would give this the description as Canadian CPP and OAS income and then the amount you received in your checking account.

@twm50 

[twm50]

Further thinking about this, reporting as other income may only apply if someone receives the Canadian benefits prior to receiving US SS benefits. However, these are retirement benefits and those reporting US retirement benefits get different treatment than ordinary income - SS taxable benefits are based on the various limitations and associated percentages that are taxable - basically the way SS benefits on line 6a reduce down to the taxable value on 6b would ignore the Canadian benefits if reported as you suggest as other ordinary income.