Hi,
Canadian citizen and non-resident of US, filing1040-NR, where I am reporting my
social security income. Using the info. on the 1042-S received from Social Security Administration (SSA),
I fill in various details into the 1042-S form of the Taxact software. However, the 1042-S from SSA
does not show a box for income code, yet Taxact requires this income code in box 1 to be filled.
My question: what should be put in for this income code for social security income?
Income code for Social Security income?
Moderator: Mark T Serbinski CA CPA
-
formerpatriot
- Posts: 89
- Joined: Mon Feb 23, 2015 4:13 pm
- Location: Montreal
Re: Income code for Social Security income?
Disclaimer: I am not an expert.
Here’s what I know.
1. If
a. you are a non-resident alien (with respect to the USA);
b. all your U.S. source income is reported on 1042-S tax slips;
c. the correct amount of taxes (as per the U.S. - Canada tax treaty) was withheld on those 1042-S tax slips,
then you do not have to file a 1040-NR.
Source: The instructions for form 1040-NR, section “Who needs to file”.
2. Your 1042-S from the SSA (Social Security Administration) is not an ordinary form 1042-S. it is a form “SSA-1042-S”. In TaxAct, you do not enter the SSA-1042-S information as you would for other 1042-S tax slips. Instead, during the TaxAct interview process there is a place where you will be asked something like “Did you receive Social Security benefits?”. You answer “Yes” and on the next screen you answer a couple of simple questions. TaxAct will fill the appropriate line of the NEC schedule. The amount shown on the NEC Schedule will be 85% of your gross S.S. income and it will appear under the 0% tax rate column.
Here’s what I know.
1. If
a. you are a non-resident alien (with respect to the USA);
b. all your U.S. source income is reported on 1042-S tax slips;
c. the correct amount of taxes (as per the U.S. - Canada tax treaty) was withheld on those 1042-S tax slips,
then you do not have to file a 1040-NR.
Source: The instructions for form 1040-NR, section “Who needs to file”.
2. Your 1042-S from the SSA (Social Security Administration) is not an ordinary form 1042-S. it is a form “SSA-1042-S”. In TaxAct, you do not enter the SSA-1042-S information as you would for other 1042-S tax slips. Instead, during the TaxAct interview process there is a place where you will be asked something like “Did you receive Social Security benefits?”. You answer “Yes” and on the next screen you answer a couple of simple questions. TaxAct will fill the appropriate line of the NEC schedule. The amount shown on the NEC Schedule will be 85% of your gross S.S. income and it will appear under the 0% tax rate column.
FormerPatriot in Montreal
Re: Income code for Social Security income?
If you live in Canada, you do NOT report your social security income in US.
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
Re: Income code for Social Security income?
In my original post, I have neglected to mention that I am currently also non-resident
of Canada, and resident of Malaysia, on the perhaps narrow/mistaken? focus on reporting US
sourced incomes only for non-resident of US.
Will this clarification changes any of the reply from Mr. formerpatriot & Nelsona, and
how will this SS income entry into the Taxact software be handled correctly, if different
from before?
Thanks in advice for any help.
of Canada, and resident of Malaysia, on the perhaps narrow/mistaken? focus on reporting US
sourced incomes only for non-resident of US.
Will this clarification changes any of the reply from Mr. formerpatriot & Nelsona, and
how will this SS income entry into the Taxact software be handled correctly, if different
from before?
Thanks in advice for any help.
Re: Income code for Social Security income?
I'm quite sure that the software can handle SS income. Since you do not live in Canada, it must be reported.
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