International Social Security Agreement With Canada In Phoenix
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FAQ
Yes you can. Canada Pension Plan benefits are based strictly on the contribution record. Residency or citizenship play no part in the calculation.
If you are a U.S. citizen, you may receive your Social Security payments outside the U.S. as long as you are eligible for them.
As a non-resident of Canada, you may be entitled to apply for Canada Pension Plan (CPP) payments and Old Age Security Pension (OAS) payments. Canada also has agreements with a number of other countries that offer comparable pension programs.
An agreement effective August 1, 1984, between the United States and Canada improves Social Security protection for people who work or have worked in both countries. It also helps protect the benefit rights of people who have earned Canadian Social Security credits based on residence and/or contributions in Canada.
You will still receive your PS pension payments regardless of where you take up residence or travel to. You will also receive your CPP even if you live in or travel to another country.
If you receive Canadian retirement or pension benefits while living in the US, you should report them on form 1040 or a 1040A (depending on which one you're filing).
If you are a resident of the United States, these retirement benefits are treated as US social security payments for tax purposes. The benefits are taxed only in the US—not Canada. Essentially, the IRS ignores the fact that these are Canadian retirement benefits and treats them like regular US social security benefits.
Fortunately, non-residents of Canada typically remain eligible for CPP and OAS payments. (It should be noted, though, that in order to receive OAS payments, Canadians living in the US must have lived in Canada for at least 20 years after turning 18.)
The agreement with Canada helps many people who, without the agreement, would not be eligible for monthly retirement, disability or survivors benefits under the Social Security system of one or both countries.
If you have social security credits in both the United States and Canada, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country's system, you will get a regular benefit from that country.