Disability Pension from Canada who gets my taxes
Moderator: Mark T Serbinski CA CPA
Disability Pension from Canada who gets my taxes
I'm having a difficult time understanding the tax laws and who get's what. I am a Canadian Citizen who is a US resident ( green card holder ) married to a US Citizen. I receive Long term disability from Sun Life and CPP disability benefits. I do not work in the US. I have received contradictory info and I am trying to sort out what forms and to whom I give what. I'm not sure if I pay tax on my Canadian income in both countries? Last year I paid tax here in the US and have filed in Canada as well but with more info I think I may have made some mistakes doing this. Any help with this will be greatly appreciated!
live and let live
Your disability pension is taxed in canada first (15% flat) and the nreported on your 1040. You claim the 15% tax on a form 1116.
You CPP however is treated speacially in that it is not taxed at all in canada, by treaty with US, and only taxed in US (and then only 85% of it).
You must tell both sun life and cpp that you are US resident, and the y will act accordingly. You should not be treating yourself as a regular recipiernt from Canada.
You CPP however is treated speacially in that it is not taxed at all in canada, by treaty with US, and only taxed in US (and then only 85% of it).
You must tell both sun life and cpp that you are US resident, and the y will act accordingly. You should not be treating yourself as a regular recipiernt from Canada.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best