Hi all,
I’m a US citizen who has been living in Canada for about 30 years and I just departed Canada in October. I receive CPP, OAS and US SS. I have come to the conclusion based on this forum that all three of these pensions are taxed based on residency. So my question is because I departed Canada can I prorate all three of these on my Canadian departure return and only tax the portion I received as a resident? I just called Service Canada to let them know I’m now a non-resident. I’m guessing I should have done this sooner.
If I can prorate them, is it best to report the entire amount with a deduction somewhere on the return for the portion received as a non-resident, or just include the amount that was taxable to me as a resident?
Hope someone can help.
Prorate OAS, CPP, SS when Depart Canada?
Moderator: Mark T Serbinski CA CPA
You should only report the portion that was taxable in Canada on your Cdn departure return. I wouldn't quite "prorate"; I would report the amounts that were received before your departure date, and none afterwards. I would NOT use line 256 to accomplish this, since that will already have the 15% of SS you report deducted, by treaty.
There was no harm in calling them late, since thee income was not subject to flat tax. But, really, isn't it hard to call October as 'just departed' at this point? Your returns are already quite late.
You are fine doing the analogous process on your 1040: report entire year's income as gross SS income , and use only the post-arrival amount to determine the taxable portion.
There was no harm in calling them late, since thee income was not subject to flat tax. But, really, isn't it hard to call October as 'just departed' at this point? Your returns are already quite late.
You are fine doing the analogous process on your 1040: report entire year's income as gross SS income , and use only the post-arrival amount to determine the taxable portion.
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
Thanks very much for this. Yes, my returns are pretty late. I've been taking care of my older sister who has been very sick and I'm just getting around to my taxes now.
I have one more question that I'm hoping you know the answer to. The only asset I own, other than a small RRSP is a car worth about $30K.
It appears this must be reported on the T1161 form. Do you know how I determine the value to put on the form? I paid about $45K for it a few years ago. Also, does this need to be reported on the T1243 form?
I have one more question that I'm hoping you know the answer to. The only asset I own, other than a small RRSP is a car worth about $30K.
It appears this must be reported on the T1161 form. Do you know how I determine the value to put on the form? I paid about $45K for it a few years ago. Also, does this need to be reported on the T1243 form?