Quote:
Originally Posted by theOAP
For the US SS pension, deduction of benefits from Canada will depend on which Canadian pension you are discussing if you are using credits from one system to qualify under the other: OAS, CPP, or QPP.
...The US is the only country I've found that applies a 'WEP' type modifier (but there may be others?). Some countries offer a tax reduction on pensions from another country (such as from the US) received in the foreign country.
|
I was referring to CPP and I actually don't need any CPP credits to qualify for Social Security benefits. My work history in the US is sufficient.
Based on the helpful link provided, I looked at how my Social Security benefits will be impacted--since I only have 28 years of "substantial earnings", I'll get 80% (instead of 90%) of the first slice of my average monthly earnings. Not a big impact, but I agree, it's a bit of a stretch to call some miniscule Canada Pension Plan benefit a "windfall".
But at least Old Age Security will not be affected by collecting Social Security and vice versa. For people in Canada who qualify for the full amount, it's a nice extra $500 a month (fully taxable). I'll get some pro-rated amount based on my number of years resident in Canada before age 65.