Social Security Calculation

[future_canuck]

When you are a Canadian tax resident and US Citizen, how does the US compute your earned wages for the purposes of social security? Will it use CAD wages, USD after converting CAD to USD, or something else?

[nelsona]

US always uses US dollars. But I'm wondering why they would need any Cdn information?

Social Security contributions are only made on work done in US.

Why are you asking the question?

[nelsona]

Once you move to Canada, your Social Security account is essentially frozen, since you cannot make any contributions. You now will be participating in the Cdn CPP system, which is entirely separate.

[future_canuck]

I guess I was thinking that since I will still owe US taxes (via tax treaty), a portion would still go to SS. But, I realize that my Canadian taxes will always control over my US taxes, so the US is not actually receiving tax income from me.

Thanks for the clarification.

[nelsona]

SS has nothing to do with taxes. it is based on work performed in US. Since you won't be working in US, no SS contributions.