Canadian Income and Withholding

[Lion]

Canadian version of Social Security with withholding. Where do I enter Income. Is it all taxable, unlike US SS? Where do I enter withholding? Just back from taking stepdaughter to college, and left my brain on campus.

[Holland]

If you are referring to OAS or CPP, convert to US funds at the correct rate and report as SS.

[Lion]

Canadian benefits

I've converted to US$. Do you mean to report the benefits from Canada and the withholding to Canada as if it were reported on a Form 1099-SSA? Taxing a maximum of 85% of the benefits per the usual worksheet for SS? Including the withholding in the usual place, not via Form 1116 for foreign tax paid?

[Bird Legs]

Canadian Soc. Sec.

You would take the foreign tax credit on the withholding. This is not U S withholding.
Yes, you would use the form 1116, Tax paid to a foreign government.

[Lion]

What line for benefits?

Thank you Bird and everyone. I was trying to take credit for foreign taxes paid via Form 1116, and converting to US$, of course. So thanx for the confirmation. Now, where do the benefits get reported? Line 21? And, they would be 100% income, not like the max 85% of our SS, right?

[Bird Legs]

Canadian S S Income

Lion, call or fax this tax service in Michigan. They specialize in Canadian Income Tax
as well as U S tax returns.
tele: 810/982-6300
fax: 810/982-3620
I have had several Canadian and U S returns by different taxpayers.
I have called this tax service in Michigan for help.
They are extremely qualified and very helpful.
Good Luck.

[Lion]

Thank You

Thank you very much, Bird. I'll call them Monday.

[Unregistered]

Canadian Social Security benefits are taxed in the same manner as US Social Security benefits (50%/85% rules). Look at IRS notice 98-23 which explains the 1997 protocol to the tax treaty involving US & Canada. I do not believe the treatment has changed since then but make sure you check.

In contrast to Canada would be UK Social Security benefits which are taxed as pensions and would not go on the S.S. line. See Rev Ruling 76-121.

New York Enrolled Agent

[Lion]

Thank You

Thank you, thank you, thank you very much.