U.S. Tax on CPP & OAS

The Canada Pension Plan (CPP) and Old Age Security (OAS) is considered to be social security payments for U.S. tax purposes. 

CPP & OAS have following tax implications in Canada and the U.S.

Canadian tax implications

If a taxpayer is a non-resident for tax purposes in Canada then there is no tax in Canada. 

If a taxpayer is a resident of Canada then it is taxed as regular income.

U.S. tax implications

If a taxpayer is a non-resident for tax purposes in the U.S. then there is no tax in the U.S.

If a taxpayer is a resident of U.S. then 85% of the CPP/OAS amount will be included in taxable income.  The 15% exemption is due to the U.S. – Canada tax treaty.