Social Security Reporting

[cammy7]

I'm a dual citizen living in Canada earning US Social Security.

Am I supposed to report these earnings on "BOTH" my US and Canadian tax returns....or Canada only.

Reason I'm confused is because I read social security is only reported on the tax return of your domicile which is Canada. Is this the case - I do not have to report this income on a US return but to reflect 85% of the income and any withholding on my Canadian return only?

Similarly if I am earning CPP I do not report it on my US return because government pensions are reportable only to the country in which you are a resident.

Thanks..

[nelsona]

You report in only in Canada. you report all of it on the appropriate line and then you deduct 15% of it on line 256.
There should not be any tax withholding

[nelsona]

CPP is only reported in Canada.

[nelsona]

These are the rules for one resident in Canada.

[MaggieA]

On some older threads it was said that a dual Canadian and US citizen residing in Canada should report their CPP and SS income on their US 1040, but report it as nontaxable. I couldn't get TurboTax to make my husband's CPP nontaxable on our 1040 last year, so I gave up and just omitted it. I reported t on his Canadian return, of course. This year he has SS income as well. I've been intending to change my US income tax program to TaxAct because others have claimed on this forum that TaxAct is able to correctly handle CPP/SS income for Canadian residents. However advice on this thread is now to report only in Canada. If that's correct I am happy because it would be more convenient for me to just leave this income off our US 1040. (It's MFJ as we are both dual citizens, residing in Canada). OK to just leave SS off 1040?


(TaxAct may be an excellent program, but I'm used to the other one so of course it would be a chore to learn a new program and I'd probably end up buying and entering our data into both, to convince myself I was OK with TaxAct).

[nelsona]

You should report SS, CPP and OAS on both returns, and make those non-taxable in US (it is easily done). You could attach an 8833 to explain the treaty position you are taken to you 1040