# Tax Advice U.S. Social Security Disability live in Canada



## Adoreth (Mar 27, 2010)

Ok, my nephew was born in Canada, moved with his parents to the U.S.A and became U.S. Citizen. He is now permanently disabled, and receives SSD. He returned to Canada, and married. His pension income is $15K Canadian., his Canadian wife's is $7K.

These kids can't afford to pay their rent let alone taxes, or accounting fees to prepare taxes.

A few questions:

Does he have to file a federal tax return in the U.S.?
Does he need some kind of medical records to go get disability deduction in Canada, or will the fact that he receives disability income be sufficient proof.
Is there someplace in Canada that will help them, in their unique situation, with free tax preparation?

Thanks for the help.


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## Auld Yin (Mar 10, 2009)

Adoreth said:


> Ok, my nephew was born in Canada, moved with his parents to the U.S.A and became U.S. Citizen. He is now permanently disabled, and receives SSD. He returned to Canada, and married. His pension income is $15K Canadian., his Canadian wife's is $7K.
> 
> These kids can't afford to pay their rent let alone taxes, or accounting fees to prepare taxes.
> 
> ...


Legally he is required to file taxes in both countries. When you use the word pension I think of someone retirement age. Is that correct or are you really referring to his Canadian disability payment? Could you elaborate please as to where his/her incomes come from.


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## Adoreth (Mar 27, 2010)

Auld Yin said:


> Legally he is required to file taxes in both countries. When you use the word pension I think of someone retirement age. Is that correct or are you really referring to his Canadian disability payment? Could you elaborate please as to where his/her incomes come from.


His income is a US disability pension, he is only 25 yrs old. He has no Canadian income.


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## Jen the RN (Mar 29, 2010)

He will have to file a US tax return, but will not owe anything.

SSD benefits are not taxable until you receive or earn a certain amount of other taxable income in the tax year.

The formula works roughly like this: If half your SSD benefits, plus your other taxable income, adds up to $25,000 or more ($32,000 for married couples, filing joint tax returns), then half of your benefit may be taxed at the same rate as your other income.

So he'll need to file, but he won't owe anything.

As for his Canadian tax liability, he likely won't owe anything, but still needs to file. He can get free help at one of the Community Volunteer Income Tax Program clinics:

Do a google search for "Community Volunteer Income Tax Program" click the first link that comes up, then click on the "Where and when can you get help?" link.

Hope that helps.


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## NickZ (Jun 26, 2009)

memory tells me he needs a Cdn doctor to sign off.

Quicken used to allow free tax returns below a certain income level. So if he knows anybody with the software they could do it. I don't remember if Quicken has an online version of the software for free or not.


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## Jen the RN (Mar 29, 2010)

A Canadian doctor won't need to sign off, he's already collecting SSD from the US Government, he isn't applying for it.

Adoreth, you just need to find out if Social Security Disability Insurance benefits from the US Government are considered taxable income in Canada. You can find that out at a Community Volunteer Income Tax Program Clinic.


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## NickZ (Jun 26, 2009)

Jen the RN said:


> A Canadian doctor won't need to sign off, he's already collecting SSD from the US Government, he isn't applying for it.
> 
> .



He's applying for the disabled deduction. That plus the personal deduction basically cover his whole income

Line 316 - Disability amount (for self)


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## NickZ (Jun 26, 2009)

Completing your tax return


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## Auld Yin (Mar 10, 2009)

I think it's unlikely, given his US disability payments he entitled to such payments from Canada but he should file a Canadian ITR as he may/will probably be eligible for other "low income" benefits. With his income level stated as above he will have no income taxes to pay.


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## Adoreth (Mar 27, 2010)

NickZ said:


> memory tells me he needs a Cdn doctor to sign off.
> 
> Quicken used to allow free tax returns below a certain income level. So if he knows anybody with the software they could do it. I don't remember if Quicken has an online version of the software for free or not.


I have the software, and am going to do his taxes. Thank you all for your input.


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