How to calculate payable tax on a foreign government pension plan?

Posted by Dolores
Tawny Angel asked:


I lived and worked in Canada before coming down here and my Canada Pension Plan (CPP) is due to effect. Studying the given relevant IRS instructions, the CPP is neither a Qualified Plan, nor a U.S. Annuity Plan. How do I calculate the amount of tax payable? Before seeking help from a professional tax planner or going for the IRS helpdesk offer on this issue, could some experts shine some light for me?

pension
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This entry was posted on Monday, April 26th, 2010 at 7:08 am and is filed under Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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One Response to “How to calculate payable tax on a foreign government pension plan?”

  1. ninasgramma Says:
    April 27th, 2010 at 1:41 pm

    Caffeinated Content

    CPP payments to US taxpayers are treated the same way as Social Security payments.

    If your only income is CPP, you owe no income tax. If your other income plus half of your CPP is greater then $25,000, you may owe some income tax on part of your CPP benefits.

    Enter your CPP payments as is they were SS payments in to the worksheet linked below to determine how much of your payments are taxable.
    ).pdf