Canadians in USA retiring in Canada

I don't know how the SSA makes their payments, if they deduct taxes off your cheque or not, they probably do. With the tax treaty between the countries you shoudn't be "double taxed", but if the tax rate in your province is higher than the tax deducted, you may have to pay Revenue Canada when you file your tax return.

Remember as well if you are a citizen of the US, then you also have to file your tax return to the IRS every year, as well as Revenue Canada.

New topic - When I retire in Canada are my social security benefits taxed by the Canadian Government?

Yes, but you have the option of using the totalization agreement instead which is why it exists to avoid this situation. Look up "totalization agreement" on the SSA website.

The totalization agreement has nothing to do with taxation of SS, only in determining eligibility.

The US/canada tax treaty governs taxation of SS and CPP/OAS, and is basically as follows:

For Cdn residents, including US citizens, SS is taxable only in canada and only 85% of it is taxable. One reports it all as income (along with CPP and OAS) and then deducts 15% of the SS on line 256 of the Cdn tax return.

The assumption I was making is that you would only be claiming from CPP and use your social security credits towards CPP (so there would be no taxes on your social security benefits because you wouldn't get any), but not being in a position to claim (yet ) I think the best idea is to read up on this: http://www.ssa.gov/international/Agreem ... anada.html and work out what benefits you are likely to get first before worrying about how it will be taxed!

There is no provision to use SS credits in order to get CPP because no such credits are needed. One qualified for CPP when one pays the first CPP premium.

It is CPP credits that are used to get SS, and one will get SS by working as little as 6 quarters in US and a total of 10 years in either country.

So, in as little as a few months , a Cdn working in the US has qualified for SS, so long as he works 10 years.

So, it is good for any Cdn who has worked even a few months in US to know how his SS is going to be taxed.

All these situations are covered accurately at forums.serbinski.com