Collecting CPP Disability while living in USA. Tax Issues?

kcoughlin · Post by **kcoughlin** » Thu Apr 12, 2012 8:18 am

Has anyone here been collecting CPP, disability, etc and then continued collecting after immigrating to the US? I'm wondering what the tax implications of that are. ie, do you have to file both US and Canadian taxes every year and be taxed by both countries? Or how does that work?

Your help is much appreciated thanks. I have not moved to USA yet, but hope the immigration process will be finalized before end of 2012.

nelsona · Post by **nelsona** » Thu Apr 12, 2012 9:48 am

CPP is only taxed in country of residence. So inform Service canada that you are a US resident (you should have done this the day you moved) and report it only on your US retunr from that day forward. You should also be filing a Cdn departure return for 2011, whic would only include the CPP you recieved up to that date, as well as taking care of any other departure related tax issues.

kcoughlin · Post by **kcoughlin** » Thu Apr 12, 2012 10:25 am

Thank you Nelsona, I haven't moved yet but will inform Service Canada when I do... that's when all the GST and Child Tax Credits stop too I'm assuming?

Also, I have a Long Term Disability Pension from Sun Life that is taxed too. Is this the same? Only taxable in country of residence?

Thanks for your help on this topic.

nelsona · Post by **nelsona** » Thu Apr 12, 2012 11:40 am

Whwn you leave inform EVERYONE that pays you that you are leaving. That will put you in the clear.

Your sunlife pension will be taxed 15% flat in canada at that point and you will report it in US as well. CCP has special treament, that ordinary pensions do not.
Assume for US tax purposes that you will be filing for 2012 so keep track of your income.