Eligibility for Canadian Pension Plans and OAS While Living in the US

Reading Time: 2 minutes

In a recent video, Mohammad Akif, a CPA, provides an in-depth explanation on whether Canadians living in the United States are eligible to receive the Canadian Pension Plan (CPP) and Old Age Security (OAS) benefits. This article summarizes the key points discussed in the video.

Introduction to CPP and OAS

  • Canadian Pension Plan (CPP): A pension program similar to the US Social Security system. If you have worked in Canada and made contributions to the CPP, you are eligible to receive pension benefits regardless of how long you lived in Canada.
  • Old Age Security (OAS): A social program providing benefits based on residency in Canada. To qualify, you must have lived in Canada for at least 20 years after turning 18. The maximum benefit requires 40 years of residency.

Eligibility for Canadians Living in the US

  • CPP Eligibility: As long as you have contributed to the CPP, either directly or through an employer, you are eligible for CPP benefits. The amount is not dependent on the number of years lived in Canada.
  • OAS Eligibility: You can receive OAS if you have lived in Canada for at least 20 years after the age of 18. Some exceptions allow for counting years worked abroad for a Canadian employer. To receive the maximum OAS benefits, 40 years of residency is required.

Additional OAS Programs

  • Supplemental Programs: OAS includes additional benefits such as the Guaranteed Income Supplement (GIS) and Allowance for the Survivor. However, these supplemental benefits require residency in Canada, meaning US residents are not eligible for them.

Receiving Benefits in the US

  • Currency and Payments: CPP and OAS benefits can be received in the currency of your resident country, such as USD for US residents, deposited into a US bank account. The exchange rates are fair, and the CRA (Canada Revenue Agency) provides a list of countries where these benefits can be received in local currencies.

Tax and Reporting

  • Tax Treaty Benefits: Under the US-Canada tax treaty, CPP and OAS benefits have no withholding tax for US residents, eliminating the usual 25% withholding rate.
  • US Tax Reporting: CPP and OAS benefits must be reported on the US tax return (Form 1040). CPP is treated similarly to US Social Security, with only 85% of the benefits being taxable. Form 8833 is used to claim treaty benefits and ensure proper tax reporting.

Summary

US residents can receive Canadian pension benefits under certain conditions. CPP eligibility is straightforward, depending mainly on contributions made during employment in Canada. OAS eligibility depends on the duration of residency in Canada. The benefits can be received in USD and are subject to US tax reporting rules, taking advantage of the US-Canada tax treaty.

For any specific questions or further clarification, viewers are encouraged to contact Mohammad Akif at his firm or through the contact information provided in the video.

Facebook
Twitter
LinkedIn
Sign Up For Our Weekly Newsletter
*Email
AKIF CPA
5.0
Based on 107 reviews
powered by Google
Annie Phillips
Annie Phillips
3 years ago
Turn around time was amazing on the project I needed done. When you don’t understand all the different forms communicat... read more
Meru Kapadia
Meru Kapadia
3 years ago
I usually don't write reviews much as everyone has different experiences, but definitely wanted to share the positive e... read more
Kevan Shah
Kevan Shah
3 years ago
I’ve been going to them for 3 years now for multiple of my businesses. I changed to them after I had problems with my p... read more
Maunil Shah
Maunil Shah
3 years ago
AKIF CPA is the best place for your tax needs! Saim has been easily available for my all my questions and concerns. Co... read more
Shah Hussain
Shah Hussain
3 years ago
Hello AKIF CPA,I wanted to share my experience with you, your team and whomever may be reading this message. My most hu... read more
Sumit Dalwadi
Sumit Dalwadi
3 years ago
The professionals at Akif have been absolutely amazing! Quick to answer all the questions I had and always available t... read more
Calvin R
Calvin R
3 years ago
I recommend these guys! I will be going back next year. They made everything simple and we understood what was happenin... read more
Ammoria Daniels
Ammoria Daniels
3 years ago
We contacted Akif with an urgent matter regarding corporate taxes. Akif immediately understood what was needed and with... read more
Joe Paneitz
Joe Paneitz
3 years ago
What an absolute pleasure to work with this CPA firm. My business is already seeing such a positive impact and growth.... read more
Helptest ARCpoint Labs
Helptest ARCpoint Labs
3 years ago
The firm is quick, responsive, and has the latest technological software. Thus far, I have been with them for 3+ years... read more
Luz Tipaz
Luz Tipaz
3 years ago
Saim and his team are the best CPAs in town. I have been their client for years. All started when I needed help with co... read more
Maria perez
Maria perez
4 years ago
Me and my husband have been getting all of our personal Taxes, business Taxes, monthly bookkeeping, accounting and payr... read more
Afnaan Amin
Afnaan Amin
4 years ago
Very good experience, we had unique situation in regards to cross border income as Canadians currently residing in the ... read more
Ryan Paton
Ryan Paton
4 years ago
I moved to the USA from Canada late 2018 as part of a promotion/relocation for work. For my 2019 returns, I used an ac... read more
Tuan Vo
Tuan Vo
4 years ago
I relocated to Texas from Alberta, Canada and needed a CPA to help me with my cross-border taxes as I was not happy wit... read more
See All Reviews
js_loader
Archives

Crypto Tax & Accounting Newsletter Signup

*Email

Cross-Border Tax Newsletter Signup

*Email