I am retired. I am Canadian, 63yrs.old, I lived and worked in Canada for 10yrs. left Canada, in 1975. I collect Canada Pension Plan only as I paid into it for 10yrs. I only receive $120 a month from Canada. I also have 40 credits with USA and started collection social security $390 a month. No taxes are deducted from either. I am still waiting to hear if USA will deduct my Canadian money from the US social security re: windfall? I still don't understand that agreement. If they deduct CPP from US social security I will have nothing left, especially when I turn 65 and they want to deduct Medicare too!! Will they deduct my CPP from US soc.sec. considering it is such a small amount? Also, I cashed in a life insurance policy in Canada in 2009, I received only $2200. Canadian, but the life insurance company told me I have to pay taxes on approx. $1700 of this.I have filed US taxes jointly with my american husband for 32 years and never filed anything ever in Canada since I left in 1975.
My question is: Do the claim the $2200 and my CPP to US taxes with my husband or do I have to file this income just with Canada? How do I handle this?
US resident - how to claim Canada Pension, US social sec
Moderator: Mark T Serbinski CA CPA
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carolepudlock
- Posts: 24
- Joined: Thu Jan 07, 2010 10:18 pm
CPP:
By agreement between canada and US, only US will tax CPP benefits for US residents. It is treated exactly like SS benefits, which means that you only include 85% of CPP as taxable.
Insurance:
When the company issues you your tax slip, include the taxable part as income on your 1040. Nothing to report in canada.
Windfall:
Not much you can do about that provision. Hopefully it won't affect you too much. Remeber though that the minimum SS you are entitled to is 1/2 of what your spouse is entitled to (that's not half of his SS; that's an amount equal to 1/2 of what he gets: if he gets $1000, you get at least $500 and he still gets $1000).
OAS:
By the way, since you spent at leat 10 years time in canada as an adult, and have contributed to SS for 10 years, you are entitled to some OAS, which you should be contacting SSA about, and they will coordinate with Cdm govt to collect for you.
By agreement between canada and US, only US will tax CPP benefits for US residents. It is treated exactly like SS benefits, which means that you only include 85% of CPP as taxable.
Insurance:
When the company issues you your tax slip, include the taxable part as income on your 1040. Nothing to report in canada.
Windfall:
Not much you can do about that provision. Hopefully it won't affect you too much. Remeber though that the minimum SS you are entitled to is 1/2 of what your spouse is entitled to (that's not half of his SS; that's an amount equal to 1/2 of what he gets: if he gets $1000, you get at least $500 and he still gets $1000).
OAS:
By the way, since you spent at leat 10 years time in canada as an adult, and have contributed to SS for 10 years, you are entitled to some OAS, which you should be contacting SSA about, and they will coordinate with Cdm govt to collect for you.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
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carolepudlock
- Posts: 24
- Joined: Thu Jan 07, 2010 10:18 pm
life insurance cash out
[quote="nelsona"]CPP:
By agreement between canada and US, only US will tax CPP benefits for US residents. It is treated exactly like SS benefits, which means that you only include 85% of CPP as taxable.
Insurance:
When the company issues you your tax slip, include the taxable part as income on your 1040. Nothing to report in canada.
Windfall:
Not much you can do about that provision. Hopefully it won't affect you too much. Remeber though that the minimum SS you are entitled to is 1/2 of what your spouse is entitled to (that's not half of his SS; that's an amount equal to 1/2 of what he gets: if he gets $1000, you get at least $500 and he still gets $1000).
OAS:
By the way, since you spent at leat 10 years time in canada as an adult, and have contributed to SS for 10 years, you are entitled to some OAS, which you should be contacting SSA about, and they will coordinate with Cdm govt to collect for you.[/quote][quote][/quote]
When I cashed out the life insurance for the $2200 canadian dollars I did not tell them I live in USA. I used my mothers canadian address and the money is in my mothers canadian bank account. It seemed to make things easier. The life insurance company will be mailing the tax form to my mothers address. They told me I have to pay taxes on at least $1695 of the $2200. I just assumed I have to claim with Canada taxes even tho I haven't filed with Canada since leaving 1975, moved to USA.
Also I was told by Canada I am not eligible for Old Age Sec. because I am not a resident. of Canada.I do get CPP as I paid into that for 10yrs, from 1964 to 1975.
Also my step dad just passed away in Canada, I have only my mother left, & I have no siblings. I am on all the bank accounts and my mothers house. When she does pass away, how do I bring the money from her bank accounts to USA and when I do have to sell her house in Canada How do I handle that with USA and Canada.
I also just wrote my USA citizenship test in Oct. 09 and waiting for confirmation re: ceremony, etc. which they say I won't know until about Mar, 2010. does it make any difference with $$ from Canada, whether I am US and Canadian (dual) citiizenships?
By agreement between canada and US, only US will tax CPP benefits for US residents. It is treated exactly like SS benefits, which means that you only include 85% of CPP as taxable.
Insurance:
When the company issues you your tax slip, include the taxable part as income on your 1040. Nothing to report in canada.
Windfall:
Not much you can do about that provision. Hopefully it won't affect you too much. Remeber though that the minimum SS you are entitled to is 1/2 of what your spouse is entitled to (that's not half of his SS; that's an amount equal to 1/2 of what he gets: if he gets $1000, you get at least $500 and he still gets $1000).
OAS:
By the way, since you spent at leat 10 years time in canada as an adult, and have contributed to SS for 10 years, you are entitled to some OAS, which you should be contacting SSA about, and they will coordinate with Cdm govt to collect for you.[/quote][quote][/quote]
When I cashed out the life insurance for the $2200 canadian dollars I did not tell them I live in USA. I used my mothers canadian address and the money is in my mothers canadian bank account. It seemed to make things easier. The life insurance company will be mailing the tax form to my mothers address. They told me I have to pay taxes on at least $1695 of the $2200. I just assumed I have to claim with Canada taxes even tho I haven't filed with Canada since leaving 1975, moved to USA.
Also I was told by Canada I am not eligible for Old Age Sec. because I am not a resident. of Canada.I do get CPP as I paid into that for 10yrs, from 1964 to 1975.
Also my step dad just passed away in Canada, I have only my mother left, & I have no siblings. I am on all the bank accounts and my mothers house. When she does pass away, how do I bring the money from her bank accounts to USA and when I do have to sell her house in Canada How do I handle that with USA and Canada.
I also just wrote my USA citizenship test in Oct. 09 and waiting for confirmation re: ceremony, etc. which they say I won't know until about Mar, 2010. does it make any difference with $$ from Canada, whether I am US and Canadian (dual) citiizenships?
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carolepudlock
- Posts: 24
- Joined: Thu Jan 07, 2010 10:18 pm
my husband is American - still employed full time
I forgot to tell you, my husband doesn't collect Soc.Sec. He is 61 yrs old and is still working full time. He hasn't yet applied for Social sec. and probably won't until full retirement age. 65 or 66. We file our taxes jointly.
I could be wrong, but that doesn't make sense about the OAS. See this link from Service Canada, http://www.servicecanada.gc.ca/eng/sc/p ... ndex.shtml
You should be able to use the social security totalization agreement if needed, but I have definitely heard of Canadians in the US getting OAS and Americans in Canada collecting Social Security.
You should be able to use the social security totalization agreement if needed, but I have definitely heard of Canadians in the US getting OAS and Americans in Canada collecting Social Security.
Also, I found that I was frequently told the wrong thing when I first moved to Canada and was trying to figure out taxes, child benefits, etc. Different people told me different things. I would get notices of assessment that were wrong. My first year, I was told we owed $200 when in actuality, they owed us $2000. And I eventually got it after 3 reassessments. The key is to keep calling and be assertive about it if you think you are due something from the CRA, Service Canada, etc.
None of the income is taxable in canada.
As Eortlunsd said, you are eligible for reduced OAS at 65.
Don't EVER pretend to be living in canada when dealing with income/estate issues.
Your US citizenship HELPS you when your husband kicks off, so get that done.
As Eortlunsd said, you are eligible for reduced OAS at 65.
Don't EVER pretend to be living in canada when dealing with income/estate issues.
Your US citizenship HELPS you when your husband kicks off, so get that done.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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carolepudlock
- Posts: 24
- Joined: Thu Jan 07, 2010 10:18 pm
what happens when my mother does pass on?
[quote="nelsona"]None of the income is taxable in canada.
As Eortlunsd said, you are eligible for reduced OAS at 65.
Don't EVER pretend to be living in canada when dealing with income/estate issues.
Your US citizenship HELPS you when your husband kicks off, so get that done.[/quote]
When my mom does pass away, I am only child. I am on all her bank accts and my name is on the house with her. How do I get $$ from Canada into usa that I will eventually inherit? The house is paid for, and I would have to sell it. Do I need to get a Canadian lawyer, or what do I do? My mom is ok now, I am just concerned about this in the future when it does happen. I read somewhere I'd have to pay USA and Canada taxes on all $$ left to me and sale of house $$.
As Eortlunsd said, you are eligible for reduced OAS at 65.
Don't EVER pretend to be living in canada when dealing with income/estate issues.
Your US citizenship HELPS you when your husband kicks off, so get that done.[/quote]
When my mom does pass away, I am only child. I am on all her bank accts and my name is on the house with her. How do I get $$ from Canada into usa that I will eventually inherit? The house is paid for, and I would have to sell it. Do I need to get a Canadian lawyer, or what do I do? My mom is ok now, I am just concerned about this in the future when it does happen. I read somewhere I'd have to pay USA and Canada taxes on all $$ left to me and sale of house $$.
You would owe nothing to either govt on anything you recieve from your mother or her estate.
The mechanics of transfering mony etc, should be handled by executor, which should not be you.
The mechanics of transfering mony etc, should be handled by executor, which should not be you.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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carolepudlock
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- Joined: Thu Jan 07, 2010 10:18 pm
executor? on will is "me" only
I am totally confused, I am named on the will as executor, through my mothers lawyer, who drew up will and power of attorney. So I go to him when the time comes, when she passes? and I thought only $10,000 was allowed to be brought into USA from another country?
Only $10,000 is allowed to be brought in CASH without having to report it. You can bring as much as you want by transfer, or as long as you declare it.
Why would you bring any cash?
As to you being executor, it would be best if a non-US person was executor, otherwise you may have to make yearly filings to IRS even before she dies. And it is usually not a gret idea for an heir to be executor. The US angle makes it even more complicated.
Why would you bring any cash?
As to you being executor, it would be best if a non-US person was executor, otherwise you may have to make yearly filings to IRS even before she dies. And it is usually not a gret idea for an heir to be executor. The US angle makes it even more complicated.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
"As to you being executor, it would be best if a non-US person was executor, otherwise you may have to make yearly filings to IRS even before she dies. And it is usually not a gret idea for an heir to be executor. The US angle makes it even more complicated"
What "yearly filings" would have to be made? My executors do not know they are executors.
What "yearly filings" would have to be made? My executors do not know they are executors.
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carolepudlock
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re: executors and yearly filings
this is starting to get confusing. There is only my mother and I am her only child. We have no other family. My step dad just passed away Dec. 30. I live in US, I am Canadian citizen, married to an american. Would my mom's lawyer who drew up the will be executor? and what filings with what country. When in the far future, when my mom passes, I can be left with about $200,000 , including sale of her little house. How can $$ be transferred to our American bank acct? and my husband said if BIG deposits are made into any bank acct the bank notifies the government. Is this true. Can't this be done in a simple way?
The bank will give you a checque in USD, and you put it in your account. The bank will notify the govt of any big deposit or transfer. So what? No big deal.
As to executor, anyone that your mother trusts can be executor. If you were in canada, I'd say there was no problem with you being executor. It;s just that you are a US person and there may be trust reporting that would need to be done, which would not need to be done by a Cdn resident.
Its not a tax issue its an 'in trust account' issue.
As to executor, anyone that your mother trusts can be executor. If you were in canada, I'd say there was no problem with you being executor. It;s just that you are a US person and there may be trust reporting that would need to be done, which would not need to be done by a Cdn resident.
Its not a tax issue its an 'in trust account' issue.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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carolepudlock
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- Joined: Thu Jan 07, 2010 10:18 pm
my mom's canadian will states:
what is the difference between executor and "estate trustee"? I am looking at my mom's will and I am called estate trustee. It also has a clause that says:
"I request, and to the extent that I may do so at law, I direct ,(daughter and son-in-law) be exempted from the need to obtain a bond, as a non-residents, to secure the proper administration of my estate.
another clause:
" to deliver the residue of my estate to my daughter, to be hers absolutely.
My question: between the $ in bank accounts, and sale of her house surely I have to pay taxes to somewhere from obtaining this $$ although it isn't income. please advise.
"I request, and to the extent that I may do so at law, I direct ,(daughter and son-in-law) be exempted from the need to obtain a bond, as a non-residents, to secure the proper administration of my estate.
another clause:
" to deliver the residue of my estate to my daughter, to be hers absolutely.
My question: between the $ in bank accounts, and sale of her house surely I have to pay taxes to somewhere from obtaining this $$ although it isn't income. please advise.