If a taxpayer is a resident of Canada, and they receive United States Social Security benefits, they must report these benefits on their personal tax return in Canada. As a result of the tax treaty between Canada and the United States, a taxpayer only has to pay tax on 85% of the benefits they receive. If they started collecting those benefits prior to 1996, they only have to pay tax on 50% of the benefits.
Confused about your Tax Free Savings Account (TFSA)?
Many taxpayers have questions about their TFSAs, as well as interest in their pension-splitting options and changes to the Canada Pension Plan.
This summer, sit down with a tall glass of iced tea and become informed by reading the newest issue of the Kemp Harvey Group newsletter. Click on the link below: