PART II - Soc. Sec, CPP,

I have not tried to keep up with the Social Security CPP Windfall
Elimination Provision -  SOMEDAY I might,
In the meantime, a person who has been there and done that has the following
suggestion
David:
Everything you said in your response is correct. However, your questioner
may be in for a "surprise" when he/she is notified of their Social
Security benefit if they have less than 30 years of "substantial"
earnings in the U.S. They could have a reduced benefit equivalent
to as much as 50% of their CPP benefit! Fortunately the rule does
not apply to foreign based pensions such as OAS which are residency
based. One of your competitor advisors - Robert Keats, CFP, author
of the "Border Guide" which is a very good book in many other aspects
of cross border issues, disputes this provision because of a so called
"hidden statement" in the WEP (Windfall Elimination Provision)
rules, which I have never able to find after extensive research
nor was he able to provide the "verbatim" ruling after I e-mailed him.
His final comment was that I could dispute it legally but it would be
too expensive to make it worth while.
I would suggest you advise your questioner to access the Social Security
website which is a little complicated to navigate at first, but has
all the information they will need including an online Benefit Calculator
(WEP Version) which they can utilize to calculate their benefit to the
dollar after inputting the appropriate information. This is also a good
way to double check the award Social Security has calculated.
> ------------------------------------------
> Date:           Tuesday June 20, 2006
> Time:           10:35 AM -0700
>
> QUESTION:
>
> 1. Dual citizen, living in Canada. Drawing SS and paying Can. taxes on
85%.
> Is this correct? (Your note in the Dec. 1995 newsletter seems to indicate
> that the benefits of one are not taxable in the other, but some of the
most
> recent correspondence/advise in your group mailings reflect that 85% is
> taxable)
>
> 2. Starting this year drawing CPP, and next year OAS. How is this treated
on
> US return?
>
> 3. Are any of the benefit amounts effected by the drawing of another? e.g.
> Will my CPP drawing impact the amount of Social Security that I am
getting.
>
> -----------------------------------------------------
> david ingram replies:
>
> In the Dec 1995 newsletter we spoke of a change in the treaty that made
CPP,
> OAS and FICA (US social Security) only taxable in the country that paid
the
> money.  i.e. only Canada would tax OAS and CPP and only the US would tax
> FICA no matter where you lived.
>
> Halfway through 1998, the powers that "be" decided they did not like the
> arrangement but it took until the summer of 1997 for them to change the
> rules so that they all became taxable in the country you lived in under
> Article XVIII of the US Canada Treaty.
>
> Therefore, you report your CPP and OAS AND FICA on the Canadian return and
> pay tax to Canada after remembering to deduct 15% of the FICA on line 256.
>
> They should all be reported on your US return as well on line 20a but put
a
> zero in 20b and attach a little or big note reminding the IRS that they
are
> all tax exempt under Article XVIII(5)
>
> Depending upon how long you lived in the US, there is sometimes a lowering
> of the FICA amount on the receipt of CPP.
>
> ------------------
> David Ingram's US / Canada Services
> US / Canada / Mexico tax, Immigration and working Visa Specialists
> US / Canada Real Estate Specialists
> My Home office is at:
> 4466 Prospect Road
> North Vancouver,  BC, CANADA, V7N 3L7
> Cell (604) 657-8451 -
> (604) 980-0321 Fax (604) 980-0325
>
> Calls welcomed from 10 AM to 10 PM 7 days a week  Vancouver (LA) time -
> (please do not fax or phone outside of those hours as this is a home
office)
>
> email to taxman at centa.com <mailto:taxman at centa.com>
> www.centa.com <http://www.centa.com/>  www.david-ingram.com
> <http://www.david-ingram.com/>
>
> Disclaimer:  This question has been answered without detailed information
or
> consultation and is to be regarded only as general comment.   Nothing in
> this message is or should be construed as advice in any particular
> circumstances. No contract exists between the reader and the author and
any
> and all non-contractual duties are expressly denied. All readers should
> obtain formal advice from a competent and appropriately qualified legal
> practitioner or tax specialist for expert help, assistance, preparation,
or
> consultation  in connection with personal or business affairs such as at
> www.centa.com <http://www.centa.com> . If you forward this message, this
> disclaimer must be included."
>
>
> Be ALERT,  the world needs more "lerts"
>
>
> David Ingram gives expert income tax & immigration help to non-resident
> Americans & Canadians from New York to California to Saudi Arabia to
Mexico
> to China or Chile - Cross border, dual citizen - out of country
investments
> are all handled with competence & authority.
>
> Alaska,  Alabama,  Arkansas,  Arizona,
> California,  Colorado, Connecticut,
> Delaware, District of Columbia,  Florida,
> Garland, Georgia,  Hawaii,  Idaho,  Illinois,
> Indiana,  Iowa,  Kansas,  Kentucky,
> Louisiana,  Maine,  Maryland,
> Massachusetts, Michigan, Minnesota,
> Mississippi,  Missouri,  Montana,  Nebraska,
> Nevada, New Hampshire,  New Jersey,
> New Mexico, New York, North Carolina,
> North Dakota,  Ohio,  Oklahoma,  Oregon.
> Pennsylvania,  Rhode Island,  Rockwall,
> South Carolina, South Dakota, Tennessee,
> Texas,  Utah, Vermont,  Virginia,
> West Virginia, Wisconsin, Wyoming,
> British Columbia, Alberta, Saskatchewan,
> Manitoba, Ontario, Quebec City,
> New Brunswick, Prince Edward Island,
> Nova Scotia, Newfoundland, Yukon and
> Northwest and Nunavit Territories,
> Mount Vernon, Eumenclaw, Coos Bay
> and Dallas Houston Rockwall Garland
> Texas  Taxman and Tax Guru  and wizzard
> wizard - consultant - expert - advisor -advisors consultants - gurus -
Paris
> Prague Moscow Berlin
> Lima Rio de Janeiro, Santaigo Zimbabwe
>
>
> international non-resident cross border income tax help assistance expert
> preparation & immigration consultant david ingram, experts on rentals
mutual
> funds RRSP RESP IRA 401(K) & divorce preparer preparers consultants
>
>
> New York, Boston, Sacramento, Minneapolis, Salem, Wheeling, Philadelphia,
> Pittsburgh, Atlanta, Pensacola, Miami, St Petersburg, Naples, Fort Myers,
> Cape Coral, Orlando, Atlanta, Arlington, Washington, Hudson, Green Bay,
> Minot, Portland, Seattle, St John, St John's, Fredericton, Quebec,
Moncton,
> Truro, Atlanta, Charleston, San Francisco, Los Angeles, San Diego,
> Sacramento, Taos, Grand Canyon, Reno, Las Vegas, Phoenix, Sun City, Tulsa,
> Monteray, Carmel, Morgantown, Bemidji, Sandpointe, Pocatello, Bellingham,
> Custer, Grand Forks, Lead, Rapid City, Mitchell, Kansas City, Lawrence,
> Houston, Albany, Framingham, Cambridge, London, Paris, Prince George,
Prince
> Rupert, Whitehorse, Anchorage, Fairbanks, Frankfurt, The Hague, Lisbon,
> Madrid, Atlanta, Myrtle Beach, Key West, Cape Coral, Fort Meyers,
Berlin,
> Hamburg
> Warsaw, Auckland, Wellington, Honolulu, Maui, Kuwait, Molokai, Beijing,
> Shanghai, Tokyo, Manilla, Kent, Winnipeg, Saskatoon, Regina, Red Deer,
Olds,
> Medicine Hat, Lethbridge, Moose Jaw, Brandon, Portage La Prairie,
Davidson,
> Craik, Edmonton, Calgary, Victoria, Vancouver, Burnaby, Surrey, Edinburgh,
> Dublin, Belfast, Glasgow, Copenhagen, Oslo, Munich, Sydney, Nanaimo,
> Brisbane, Melbourne, Darwin, Perth, Athens, Rome, Berne, Zurich, Kyoto,
> Nanking, Rio De Janeiro, Brasilia, Colombo, Buenos Aries, Squamish,
> Churchill, Lima, Santiago, Abbotsford, Cologne, Yorkshire, Hope,
Penticton,
> Kelowna, Vernon, Fort MacLeod, Deer Lodge, Springfield, St Louis,
Centralia,
> Bradford, Stratford on Avon, Niagara Falls, Atlin, Fort Nelson, Fort St
> James, Red Deer, Drumheller, Fortune, Red Bank, Marystown, Cape Spears,
> Truro, Charlottetown, Summerside, Niagara Falls, Albany Zimbabwe
>
>  David Ingram expert income tax help and preparation of US Canada Mexico
> non-resident and cross border returns with rental dividend wages
> self-employed and royalty foreign tax credits
> This from "ask an income tax and immigration expert" from www.centa.com
> <http://www.centa.com/>  or www.jurock.com <http://www.jurock.com/>  or
> www.featureweb.com <http://www.featureweb.com/> . David Ingram deals on a
> daily basis with expatriate tax returns with:
> multi jurisdictional cross and trans border expatriate problems  for the
> United States, Canada, Mexico, Great Britain, United Kingdom, Kuwait,
Dubai,
> Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France,
> Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia,
> Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran,
> India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba,
> Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK,
> GB, and any of the 43 states with state tax returns, etc. Rockwall,
Dallas,
> San Antonio Houston
> Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and
Immigration
> Tips, Income Tax  Immigration Wizard Antarctica Rwanda Guru  Consultant
> Specialist Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate
tax
> specialist expert preparer expatriate anti money laundering money
seasoning
> FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border
transactions
> Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US
>
>
>
>
> -----------------------------------------------------------------
> List-Unsubscribe: http://lists.centa.com/mailman/listinfo/centapede
> mailto:centapede-request at lists.centa.com?subject=unsubscribe

--
No virus found in this incoming message.
Checked by AVG Free Edition.
Version: 7.1.394 / Virus Database: 268.9.3/374 - Release Date: 6/23/06

Trackback

Trackback URL for this entry: http://www.centa.com/trackback.php/UsCaWeekofMon20060619002764.html

No trackback comments for this entry.

0 comments