Collecting Social Security & CPP, residing in U.S.

[PaulPhoenix]

Hi. I am a Canadian living in the U.S. I am turning 65 in early 2024. I retired recently. I lived and worked in Canada until I was 48 at which time I moved to U.S. I qualify for CPP & OAS which I plan on drawing benefits on at age 65. I have enough credits in the U.S. to draw full social security benefits at age 66 & 10 months. My question is: will my social security benefits here in the U.S. be reduced by the amount I will already be receiving in CPP & OAS benefits from Canada? In any case, if I have tax withdrawn from CPP & OAS benefits, will those tax deductions count towards my U.S. taxes. I only file a U.S. tax return. Based on my residency and other factors, it was determined that I do not need to file a Canadian tax return. Thank you so much for any insights.

[nelsona]

First off, US residents who collect CPP and/or OAS do not owe any tax in Canada on that income. It is included on their US return, and treated like social security. Canada will send you the entire amount you are entitled to. OAS of course will be paid out at 30/40ths of the max, since you left at age 48. CPP payout will be based solely on your Cdn work history.

The reduction in SS because one collects foreign pension income (including CPP, but not OAS) is by a process called WEP. It is not a dollar for dollar reduction; it will be closer to a reduction of 50% of your foreign pension, depending on your US work history.

[PaulPhoenix]

Thank you so much for the response. This is very helpful. I appreciate the insights.