Aliens and U.S. Citizens Living Abroad > Canadian & U.S. Tax Issues

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Frequently Asked Tax Questions

Aliens and U.S. Citizens Living Abroad - Canadian & U.S. Tax Issues

Rev. date: 1/1/2010

I am a U.S. citizen. If I move to Canada to live and work there as a Canadian permanent resident, do I pay both U.S. and Canadian Taxes?

Canada/Canadian Issues
Information on the United States-Canada Income Tax Treaty
Permanent Resident
U.S. Citizens and Resident Aliens Abroad

United States citizens living abroad:

Are required to file annual U.S. income tax returns.
Must report their worldwide income if they meet the minimum income filing requirements for their filing status and age.
Must contact the Canadian Government to determine whether you must file a Canadian tax return and pay Canadian taxes.
May be able to elect to exclude some or all of their foreign earned income, if certain requirements are met, or to claim a foreign tax credit if Canadian income taxes are paid.

Additional Information

Publication 54 Tax Guide for U.S. Citizens and Resident Aliens Abroad Publication 514 Foreign Tax Credit for Individuals Publication 597 Information on the United States-Canada Income Tax Treaty Publication 901 U.S. Tax Treaties

Rev. date: 1/1/2011

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.

Canada/Canadian Issues
Information on the United States-Canada Income Tax Treaty
Retirement Plan
Special Rule for Canadian and German Social Security Benefits
U.S. Citizens and Resident Aliens Abroad
U.S. Information Return for Beneficiaries of Certain Canadian Registered Retirement Plans

Benefits paid under the Canada Pension Plan (CPP), Quebec Pension Plan (QPP), and Old Age Security (OAS) program:

• If the recipient is a resident of the United States—
• are taxable only in the United States if the recipient is a resident of the United States,
• are treated as U.S. social security benefits for U.S. tax purposes, and
• are reported on Form 1040 (PDF), U.S. Individual Income Tax Return or Form 1040A (PDF) on the line on which U.S. social security benefits would be reported.
• If the recipient is a U.S. citizen or green card holder who is a resident of Canada are taxable only in Canada.

NOTE: Refer to Tax Topic 423 for information about determining the taxable amount of your benefits.

Additional Information

Publication 597 Information on the United States-Canada Income Tax Treaty Publication 519 U.S. Tax Guide for Aliens Publication 915 Social Security and Equivalent Railroad Retirement Benefits Tax Topic 423 Social Security and Equivalent Railroad Retirement Benefits

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