For an American citizen residing in Canada using Form 1040A, is the taxable amount of U.S. social security benefits $0.00 due to the Canada-U.S. tax treaty?

Under the 1997 protocol to the Canada - U.S. tax treaty, the Canadian and U.S. governments agreed to return to a residence-based system under which social security benefits are taxable exclusively in the country where the recipient resides. As a result, the entry for taxable social security is $0.00.

References:

• Tax Topic 423, Social Security and Equivalent Railroad Retirement Benefits
• Publication 597, Information on the United States-Canada Income Tax Treaty
• Publication 915, Social Security and Equivalent Railroad Retirement Benefits

In addition to U.S. Social Security, I also receive British Social Security. How should I report the British Social Security income?

Under the current U.S.-United Kingdom income tax treaty which became effective 2003, social security income is taxable only by the country of residence. If you are a resident of the U.S. for tax purposes, the income would be reported and taxed in the U.S. You would not treat the income as U.S. social security benefits. The entire amount would be taxable as pension and annuity income on your U.S. tax return. Your "investment in the contract" for purposes of determining the portion of each payment that is taxable would be $0. Under the prior treaty with the UK, social security benefits were treated the same way.

References:

• Tax Topic 410, Pensions and Annuities
• Publication 519, U.S. Tax Guide for Aliens
• Publication 575, Pension and Annuity Income