During the Great Depression of the 1930s, most elderly people had little means of support. Job-based pensions were rare. The Townsend movement – a proposal to pay everyone over age 60 0/month (a vast sum at the time) – began in California and spread across the country. It became the radical alternative to the Social Security proposal in Congress and indirectly helped enact Social Security as the more moderate plan. For more info on California’s various pensionite movements, see Mitchell, “Pensions, Politics, and the Elderly” (ME Sharpe, 2000).
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Question by Tawny Angel: How to calculate payable tax on a foreign government pension plan?
I lived and worked in Canada before coming down here and my Canada Pension Plan (CPP) is due to effect. Studying the given relevant IRS instructions, the CPP is neither a “Qualified Plan”, nor a “U.S. Annuity Plan”. How do I calculate the amount of tax payable? Before seeking help from a professional tax planner or going for the IRS helpdesk offer on this issue, could some experts shine some light for me?

Best answer:

Answer by ninasgramma
CPP payments to US taxpayers are treated the same way as Social Security payments.

If your only income is CPP, you owe no income tax. If your other income plus half of your CPP is greater then ,000, you may owe some income tax on part of your CPP benefits.

Enter your CPP payments as is they were SS payments in to the worksheet linked below to determine how much of your payments are taxable.

http://www.completetax.com/taxguide/tools/downloads/07-ssbenefits(1040).pdf

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