Taxation of Disability Income from CDN Sources if PR of USA

[misters]

Hi Everyone!

My wife and I are moving to the United States for my work.

I am a dual Canada/US citizen. My wife is Canadian and plans to apply for permanent residency in the USA.

My wife suffers from a severe permanent disability and is currently in receipt of CPP Disability Benefits and Long-Term Disability Benefits from an insurance policy where premiums were paid by her Canadian employer (both benefits are taxable).

MY QUESTIONS
if my wife becomes a permanent resident of the United States, how will this affect the taxation of her CPP-D benefits?

if my wife becomes a permanent resident of the United States, how will this affect the taxation of her private disability benefits (paid from an insurance policy where premiums were paid by her Canadian employer)?

Any insights? I've done a lot of reading on the issue. It seems quite complex and I've not been able to find any answers.

Thanks,
M

[nelsona]

Their taxability in US will be the same as if she was in Canada.

If her CPP-D was taxable in Canada, it will be taxable in US (but no longer in Canada) treated like Social security disability payments (which might make it not taxed in US depending on other income). If it was not taxable in Canada, then it will continue to be non-taxable in US.

If her disability insurance was not taxable in Canada, it will not be taxable in US either. If it was taxable in Canada, it will remain so, and also be taxed in US, with credit given for Cdn tax withheld (15%).

[nelsona]

I presume that you will be applying for her PR BEFORE you move, correct?

[nelsona]

... and as an aside, have you ensured that her medical coverage in US will be adequate?