social security – Bert Mulder | Chartered Professional Accountant

Question: Are the Canada Pension Plan and Canadian Old Age Security benefits taxable? If they are, please tell me where they should be entered on Form 1040.

by Bert Mulder 02/01/2013 1040, Canadian, cpp, OAS, residence, social security, U.S.

Answer: The taxation of payments received from Canadian retirement programs that are similar to the U.S. Social Security system receive special tax treatment due to an income tax treaty between the United States and Canadian governments. The way this income is taxed depends on the recipient’s residence. The special tax treatment applies to payments receive…