Living in the US and receiving Canadian retirement income?
Tips on reporting this income to the IRS and related issues
Many former Canadian residents prefer spending their retirement years in the US, especially in the Southern states with better climate and more affordable property values. But this triggers many complexities, especially in reporting Canadian retirement income to the IRS. This article will give some quick tips on reporting of such income to the IRS.
First of all, it is important to determine what type of retirement income you are receiving. Should a person be a resident of Canada, the income would be reported on various T-slips which include but are not limited to:
- T4RSP slips – to report distributions from RRSP accounts which could be treated as annuity payments or regular account withdrawals;
- T4A slips – various pension, retirement, annuity or other similar income;
- T4A(P) slips – Canada Pension Plan benefits;
- T4A(OAS) slips – Canadian old age security payments.
New Housing Rebate
The combination of the Goods and Services Tax (GST) and the Provincial Sales Tax (PST) into the Harmonized Sales Tax (HST) that has taken place in the provinces of New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island, has resulted in increased sales tax charged to purchasers of a number of consumer goods and services.