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When a person receiver US Social Security Profile allows up to a $2000.00 pension income deduction on Line 314. 2 clients have had theirs sent back owing more becaust CRA says that US Social Security doesnt qualify. Who is right? Thanks
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Pension Income Deduction
#1
Paperworker 
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Posted 30 April 2007 - 07:12 PM
MultiQuote#3 Guest_snowplowguy_*
Posted 30 April 2007 - 09:12 PM
Paperworker, on Apr 30 2007, 03:12 PM, said:
2 clients have had theirs sent back owing more becaust CRA says that US Social Security doesnt qualify.
Pension credit the lesser of $2,000 or 85% of the Gross US Social Security.
I'm with Bert....... maybe you didn't enter it in the proper area. You'll know if you did.... as Profile calculates the 15% which is not taxable and automatically puts it on line 256 of the return.
None of my returns have been sent back to disallow a pension credit based on Social Security..... and this is the only source of pension income for some of my clients.
#4
Paperworker
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Posted 30 April 2007 - 10:49 PM
Bert_Mulder_CGA, on Apr 30 2007, 07:59 PM, said:
perhaps you entered it on the wrong line of the return?
I went to "Slips" then Foreign Pension Income and enterred $1782.00 on line labled "US Social Security Benifits" Line 256 reads $303.14 and line 314 on SH1 reads $1714.81. I have been trying again to get through to CRA but no luck
#5 Guest_snowplowguy_*
Posted 30 April 2007 - 11:06 PM
Pension Credit
http://www.cra-arc.g.../314/qa6-e.html
Obviously not written by the same CRA rep that Paperworker is dealing with.....lol said:
Foreign pensions (incl. US Social Security)
The amount of foreign pension that is not deductible at line 256 is still eligible for this amount.
The amount of foreign pension that is not deductible at line 256 is still eligible for this amount.
http://www.cra-arc.g.../314/qa6-e.html
#6
Tim Parris
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Posted 01 May 2007 - 01:46 AM
Paperworker, on Apr 30 2007, 05:49 PM, said:
I went to "Slips" then Foreign Pension Income and enterred $1782.00 on line labled "US Social Security Benifits" Line 256 reads $303.14 and line 314 on SH1 reads $1714.81. I have been trying again to get through to CRA but no luck
That is not where you put it
F4
Foreign Income
U.S. Social Security Benefits
If you do this correctly, S1 will say $1,514.70 on line 314 with a US Social Security of $1,782.00 which is 85% of the social security
#7
Paperworker
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Posted 01 May 2007 - 01:59 AM
Tim Parris, on May 1 2007, 01:46 AM, said:
That is not where you put it
F4
Foreign Income
U.S. Social Security Benefits
If you do this correctly, S1 will say $1,514.70 on line 314 with a US Social Security of $1,782.00 which is 85% of the social security
F4
Foreign Income
U.S. Social Security Benefits
If you do this correctly, S1 will say $1,514.70 on line 314 with a US Social Security of $1,782.00 which is 85% of the social security
Dont forget it converted US $1782.00 to $2020.95 CDN on Line 115 (US Average) thus 85% is $1717.81 . I entered $1782.00 on the line which reads "US Social Security Benifits) on the foreign income form
#8
Tim Parris
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Posted 01 May 2007 - 02:41 AM
Ah, when you said slips, I though you meant OtherIncome screen.
#9
Tim Parris
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Posted 01 May 2007 - 02:47 AM
I'm with SPG on this one. The CRA worker who rejected the return is wrong.
See web page http://www.cra-arc.g.../314/qa6-e.html for the detail, print it and request an adjustment.
See web page http://www.cra-arc.g.../314/qa6-e.html for the detail, print it and request an adjustment.
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