PLEASE HELP with Supplementary Death Benefit

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mtruckner
Posts: 3
Joined: Wed Nov 07, 2018 7:50 pm

PLEASE HELP with Supplementary Death Benefit

Post by mtruckner »

Hi,

I need to figure out the US tax implications of receiving a "Supplementary Death Benefit" from the Canadian Government. As a Canadian citizen living with permanent residence in the US I am getting confused. I can discern that Canada does not tax this benefit according to their website, but I am unsure if the US also classifies this income as tax free. Does anyone have any experience with how the IRS treats this income?

https://www.canada.ca/en/treasury-board ... eath-deces

Thanks!
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: PLEASE HELP with Supplementary Death Benefit

Post by nelsona »

It is tax-free, since it is treated like a pension.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
mtruckner
Posts: 3
Joined: Wed Nov 07, 2018 7:50 pm

Re: PLEASE HELP with Supplementary Death Benefit

Post by mtruckner »

Thanks for the reply. I am confused as you mentioned it is treated as a pension. Pensions are taxable income are they not?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: PLEASE HELP with Supplementary Death Benefit

Post by nelsona »

By treaty, only to the extent that they are taxable in the country of origin. Since Canada does not tax it, nor does US.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
mtruckner
Posts: 3
Joined: Wed Nov 07, 2018 7:50 pm

Re: PLEASE HELP with Supplementary Death Benefit

Post by mtruckner »

Thanks!
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