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songqn
New Member

What does the "Pension income exempt under a tax treaty" mean? I received SSA from US and report to Canada tax.

I received SSA from the US and reported to Canada tax.
what does the "Pension income exempt under a tax treaty" mean?
1 Reply

What does the "Pension income exempt under a tax treaty" mean? I received SSA from US and report to Canada tax.

Pension income exempt under a tax treaty is foreign income that is not taxable due to a treaty between Canada and that foreign country.

 

If you have Social Security from the US, there are two specific boxes for that type of income. Under the terms of the Canadian/U.S. tax treaty, you do not have to pay Canadian income tax on the entirety of your Social Security payments. Instead, you may claim an exemption on 15 percent of this income.