lump sum payment from CPP withholding tax

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
mimianddaniel
Posts: 8
Joined: Mon Dec 30, 2013 2:22 pm

lump sum payment from CPP withholding tax

Post by mimianddaniel » Fri Mar 07, 2014 3:47 pm

I received a lump sum payment that was over $30k after I had left Canada (emigrant status) which was at %33. I received T4a form. Looking through CRA website, it shows that for non-residence it should be at %25 for CPP. Is this correct? And How do I go about getting the refund?

I assume i would need to add this to my income in my US for 2013 as well? Is there any tax credit I can apply for that in the states?

nelsona
Posts: 16456
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Fri Mar 07, 2014 4:01 pm

Contact CRA, but in fact CPP payments made to US residents are not to be taxed in Canada at all, they should only be taxed in US.

http://www.cra-arc.gc.ca/partxiii-calculator/

You will proably have to file a NR7 form, on which you provide them a copy of your T4A, and claim the tax back.

Since it isn't taxable in Canada, you simply report the income as social security. You only include 85% of the total (just like social security in US), with no credit for CDn tax.

Shows how important it is to tell EVERYONE that is paying you that you are US resident.

Otherwise, how is your departure tax return going?
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

mimianddaniel
Posts: 8
Joined: Mon Dec 30, 2013 2:22 pm

Post by mimianddaniel » Fri Mar 07, 2014 4:11 pm

[quote="nelsona"]Contact CRA, but in fact CPP payments made to US residents are not to be taxed in Canada at all, they should only be taxed in US.

http://www.cra-arc.gc.ca/partxiii-calculator/

You will proably have to file a NR7 form, on which you provide them a copy of your T4A, and claim the tax back.

Since it isn't taxable in Canada, you simply report the income as social security. You only include 85% of the total (just like social security in US), with no credit for CDn tax.

Shows how important it is to tell EVERYONE that is paying you that you are US resident.

Otherwise, how is your departure tax return going?[/quote]

Thanks for the quick response!! Your answer just affirmed my reading on filling out NR7. CRA line has been busy for last how many days, I lost count.
Lots of readings and searching your forum, which is wonderfully resourceful, and I am very grateful you provide a forum like this. I still have US one to deal with after the Canadian one. :cry:

nelsona
Posts: 16456
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Fri Mar 07, 2014 4:17 pm

Please do not use the quiote feature, it doesn't work, clutters the thread, and I know what I wrote.

Don't bother calling CRA telephlunkies with questions. I should have even mentionned it. Same with IRS.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

nelsona
Posts: 16456
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Fri Mar 07, 2014 4:20 pm

By the way, it may take upto a year to get that money back .NR-7's are notoriously slowly processed.

That is why I was hoping you would contact Service Canada (not CRA) to see if they had made a mistke that they could fix, or if, because you had not informed them of your departure.

But, I don't think it is worth it at this point, since the T4a is issued.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Jasmine Blandow
Posts: 1
Joined: Thu Jul 02, 2020 4:51 am

Re: lump sum payment from CPP withholding tax

Post by Jasmine Blandow » Thu Jul 02, 2020 4:53 am

Tax and accounting issues can be present on this it has data about the fields and description to read on this. Firms that will work on these portions share [url=https://allessayvikings.com/essay-writi ... ount-code/]bestessays.com coupon codes[/url] that can be used for buying stuff or books online through forums on it.

Post Reply