Free Trial: TheSiteFactory.com

Reporting Canadian pension income

Technical topics regarding tax preparation.
#1
Posts:
89
Joined:
28-Apr-2015 12:03pm
Location:
Rhode Island
Client has Old Age pension from Canada totaling $1558 USD. She has lived here for over 30 years and is a US citizen. My research tells me that this income should be reported on line 5a of the 1040 (the line where social security benefits go). She has Social Security benefits of $26,418 so I would be correct to put $27,976 in line 5a? I have a concern that the IRS is expecting to see $26,418 in that line from the SSA-1099. Could anyone alleviate my concerns? Thanks!
 

#2
Joan TB  
Posts:
1326
Joined:
21-Apr-2014 9:08am
Location:
Texas
Including it on line 5a is correct. It is also entitled to the no-more-than-85% is taxable calculation.
 

#3
Posts:
226
Joined:
28-Jul-2017 12:08pm
Location:
North Country, USA
Agreed
 

#4
Posts:
229
Joined:
13-Feb-2017 3:50pm
Location:
California, USA
Joan TB wrote:Including it on line 5a is correct. It is also entitled to the no-more-than-85% is taxable calculation.


Does that only apply to Canada? Lets say a US citizen has social security benefit from UK, Is he also eligible for the 85% cap?
 

#5
Posts:
226
Joined:
28-Jul-2017 12:08pm
Location:
North Country, USA
Did you check the tax treaty?
 

#6
Joan TB  
Posts:
1326
Joined:
21-Apr-2014 9:08am
Location:
Texas
You have to look at the US/UK tax treaty which may or may not have the same provisions as the US/Canada tax treaty.

Here is a link:

https://www.irs.gov/businesses/international-businesses/united-kingdom-uk-tax-treaty-documents

I guess I am just a nerd, but I find these to be fascinating reading!
 

#7
Posts:
89
Joined:
28-Apr-2015 12:03pm
Location:
Rhode Island
Thank you very much for confirming - I hope everyone has a safe and happy 4th of July - try not to do too many tax returns that day!
 


Return to Taxation



Who is online

Users browsing this forum: CIP1040, CrowCPA, Google [Bot], Norman-TX, taxcpa and 41 guests