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I pay US social security tax on US self employment income. How can I enter this income and 1) avoid CPP tax for which I'm not liable, and 2) receive RRSP limit credit?

I'm a US citizen resident in Canada.  I have US self employment income on which I pay US social security tax.  The US and Canada have a "totalization" agreement so individuals don't have to pay 'social security tax' to both countries on the same income.

I don't see any way to enter this income and still deduct my business expenses, avoid paying CPP tax and still have this income recognized as earned income so that it is taken into account when the CRA calculates my RRSP limit.

Help!

1 Best answer

Accepted Solutions

I pay US social security tax on US self employment income. How can I enter this income and 1) avoid CPP tax for which I'm not liable, and 2) receive RRSP limit credit?

Please take the time to review the presented links from TurboTax, they will answer all your questions.

  •     Help you file your tax return with the CRA, based on residency status.
  •    Give you requirements to filing a tax return and what income is to be entered.
  •    Provides you with a link to contact the CRA International Tax Office
  •   And answer your questions on RRSP limits & credits, and CPP tax.

 

Residency status when preparing a return in TurboTax

https://turbotax.community.intuit.ca/replies/2647682

 

And this document will give you directives on how to enter in this foreign income based on the treaty between US & Canada:

How do I enter foreign income that is subject to a tax treaty?

https://turbotax.community.intuit.ca/replies/2647756

 

Hope this helps.


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1 Reply

I pay US social security tax on US self employment income. How can I enter this income and 1) avoid CPP tax for which I'm not liable, and 2) receive RRSP limit credit?

Please take the time to review the presented links from TurboTax, they will answer all your questions.

  •     Help you file your tax return with the CRA, based on residency status.
  •    Give you requirements to filing a tax return and what income is to be entered.
  •    Provides you with a link to contact the CRA International Tax Office
  •   And answer your questions on RRSP limits & credits, and CPP tax.

 

Residency status when preparing a return in TurboTax

https://turbotax.community.intuit.ca/replies/2647682

 

And this document will give you directives on how to enter in this foreign income based on the treaty between US & Canada:

How do I enter foreign income that is subject to a tax treaty?

https://turbotax.community.intuit.ca/replies/2647756

 

Hope this helps.