CPP and OAS and related foreign tax credit

blairgoates · Post by **blairgoates** » Tue Sep 06, 2011 2:58 pm

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 · Post by **blairgoates** » Tue Sep 06, 2011 3:02 pm

coorection to my original post...all cpp and oas is exempt to US so ignore the 15% comment.

nelsona · Post by **nelsona** » Tue Sep 06, 2011 3:09 pm

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.

nelsona · Post by **nelsona** » Tue Sep 06, 2011 3:13 pm

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.

blairgoates · Post by **blairgoates** » Tue Sep 06, 2011 3:41 pm

You confimed what I thought...thanks

Serbinski Accounting Firms

CPP and OAS and related foreign tax credit

CPP and OAS and related foreign tax credit

Correction :

Thanks