Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
XXXX N.R. Mitchell (613) 993-7295
December 23, 1985
Dear XXXX
Re: Taxation by Canada of U.S. Social Security Payments
This is in reply to your letter of October 15, 1985 in which you ask us to confirm your understanding that after 1985, U.S. social security payments paid to "an American living in Canada" (by which we assume you mean a U.S. citizen resident in Canada) would not be fully taxed by Canada.
We can advise you that pursuant to paragraph 5 of Article XVIII of the Canada - U.S. Income Tax Convention (1980), in the case of U.S. social security paid to a resident of Canada, one half of these benefits will be exempt from taxation by Canada.
This provision concerning the taxation of U.S. social security in Canada takes effect for the first taxable year beginning on or after January 1, 1985.
The comments above pertain solely to the treatment of U.S. social security payments for the purposes of Canadian taxation. For information regarding possible U.S. tax implications, we suggest that you contact the American authorities.
Yours truly,
for Director Small Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1985
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© Sa Majesté la Reine du Chef du Canada, 1985
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