CPP and OAS and related foreign tax credit

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blairgoates
Posts: 48
Joined: Thu Apr 14, 2011 12:35 pm

CPP and OAS and related foreign tax credit

Post by blairgoates »

If I claim Treaty XVIII.5 for CPP and OAS on Form 8833 can I still claim all my foreigh tax credits ? If not, do I have to subtract out the full amount related to total income form OAS and CPP or just the amount related to the 15% taxable ?

Thanks
blairgoates
Posts: 48
Joined: Thu Apr 14, 2011 12:35 pm

Correction :

Post by blairgoates »

coorection to my original post...all cpp and oas is exempt to US so ignore the 15% comment.
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
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Post by nelsona »

Not quite sure what your question is, but a US citizen living in canada and collecting OAS and CPP simply excludes these from his income on 1040. there is a couple of ways to do this, but the easiest is reporting the entire amount of CPP/OAS on line 20a and ZERO on line 20b. Your 8833 serves as the explanation.

Since you are excluding this income, you don't get to claim any taxes against it, either.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
nelsona
Posts: 18680
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

and just so we understand what the 15% means:

A US citizen living in canada and drawing social security (as opposed to OAS/CPP) reports this income only in canada, but also gets to deduct 15% of the gross on line 256.

he would report CPP/OAS/SS on line 20a and ZERO on line 20b of 1040.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
blairgoates
Posts: 48
Joined: Thu Apr 14, 2011 12:35 pm

Thanks

Post by blairgoates »

You confimed what I thought...thanks
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