US citizen resident in Canada.
By treaty I do not have to report payouts from OAS & QPP on 1040.
The form 8938 instructions indicate that I do not "have an interest" in a foreign asset if distributions from that asset are not required to be reported in my US tax return.
I hope that means my not having listed them so far is OK.
Yes or no, do I have to list OAS & QPP on form 8938 ?
US citizen in CA - list OAS & QPP on form 8938 ?
Moderator: Mark T Serbinski CA CPA
US citizen in CA - list OAS & QPP on form 8938 ?
OK, then I propose to do the following:
a) 1040 Line 20a = combined OAS + QPP amounts.
b) 1040 Line 20b = zero.
c) To explain Lines 20a & 20b, I will enclose a summary of the OAS and QPP amounts received and mention the US-Canada Tax Treaty.
d) I will list the OAS and QPP on form 8938 part VI and check the box "Check if no tax item reported in Part III".
Is this right?
a) 1040 Line 20a = combined OAS + QPP amounts.
b) 1040 Line 20b = zero.
c) To explain Lines 20a & 20b, I will enclose a summary of the OAS and QPP amounts received and mention the US-Canada Tax Treaty.
d) I will list the OAS and QPP on form 8938 part VI and check the box "Check if no tax item reported in Part III".
Is this right?
Subject: USC in CA - list OAS & QPP on form 8938 ?
Well, I found an IRS page that says this:
Q: I am a U.S. taxpayer and have earned a right to foreign social security. Do I need to report this on Form 8938?
A: Payments or the rights to receive the foreign equivalent of social security, social insurance benefits or another similar program of a foreign government are not specified foreign financial assets and are not reportable.
So my proposal (d) is wrong; CPP & OAS do not go on 8938.
And (sheepishly), I see that the form 8938 instructions say the same thing under the heading Foreign Social Security.
Q: I am a U.S. taxpayer and have earned a right to foreign social security. Do I need to report this on Form 8938?
A: Payments or the rights to receive the foreign equivalent of social security, social insurance benefits or another similar program of a foreign government are not specified foreign financial assets and are not reportable.
So my proposal (d) is wrong; CPP & OAS do not go on 8938.
And (sheepishly), I see that the form 8938 instructions say the same thing under the heading Foreign Social Security.
My justification for proposal (b) 1040 Line 20b = zero is this:
United States - Canada Income Tax Convention, article XVIII paragraph 5:
Benefits under the social security legislation in a Contracting State paid to a resident of the other Contracting State or a citizen of the United States shall be taxable only in the first-mentioned State.
. . . which means that Benefits under the social security legislation in Canada paid to a citizen of the United States shall be taxable only in Canada. So that should justify setting 1040 Line 20b = zero.
Does anyone agree or disagree?
United States - Canada Income Tax Convention, article XVIII paragraph 5:
Benefits under the social security legislation in a Contracting State paid to a resident of the other Contracting State or a citizen of the United States shall be taxable only in the first-mentioned State.
. . . which means that Benefits under the social security legislation in Canada paid to a citizen of the United States shall be taxable only in Canada. So that should justify setting 1040 Line 20b = zero.
Does anyone agree or disagree?
The IRS page
http://www.irs.gov/Individuals/Internat ... y-Benefits
says this about 8833 and social security & other public pensions:
Exceptions
You do not have to file Form 8833 for any of the following situations:
2. You claim a treaty exemption that reduces or modifies the taxation of income from dependent personal services, pensions, annuities, social security and other public pensions, or income of artists, athletes, students, trainees, or teachers. This includes taxable scholarship and fellowship grants.
. . . I am not trying to argue with you: do you recommend that I file form 8833 regardless of that apparent exception?
http://www.irs.gov/Individuals/Internat ... y-Benefits
says this about 8833 and social security & other public pensions:
Exceptions
You do not have to file Form 8833 for any of the following situations:
2. You claim a treaty exemption that reduces or modifies the taxation of income from dependent personal services, pensions, annuities, social security and other public pensions, or income of artists, athletes, students, trainees, or teachers. This includes taxable scholarship and fellowship grants.
. . . I am not trying to argue with you: do you recommend that I file form 8833 regardless of that apparent exception?
OK, sorry, ignore previous question, as I just read your post of 2010 June 14, 8:34pm.
But for the 8833, my guesses for filling out items 2 to 6 are as follows:
Form 8833, as amended in December 2013:
It looks like I can leave item 4 blank and check item 5 "No".
Item 2 -- list the IR code provisions overruled by the treaty position: is this US Code section 86(d)?
Item 3 -- name & US address of payor: Gov of Canada (OAS), Gov of Quebec (QPP)?
Item 6 -- detailed explanation: do I just list the OAS & QPP amounts for me and for my wife -- *OR* do I have to file four separate 8833 forms for those four income items?
But for the 8833, my guesses for filling out items 2 to 6 are as follows:
Form 8833, as amended in December 2013:
It looks like I can leave item 4 blank and check item 5 "No".
Item 2 -- list the IR code provisions overruled by the treaty position: is this US Code section 86(d)?
Item 3 -- name & US address of payor: Gov of Canada (OAS), Gov of Quebec (QPP)?
Item 6 -- detailed explanation: do I just list the OAS & QPP amounts for me and for my wife -- *OR* do I have to file four separate 8833 forms for those four income items?
Since, as you point out, you don't HAVE TP send 8833, just put what you want to EXPLAIN what you are doing. One 8833 for the type of income you is sufficient.
No need for any address of govt, they don't have a US address.
Don't worry about any other items.
No need for any address of govt, they don't have a US address.
Don't worry about any other items.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
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