Canada Pension Plan (CPP) or Registered Retirement Savings Plan(RRSPRRIF) benefits, do they reduce spousal Social Security benefit amounts in this specific scenario?
We are a married couple (more than 2 years). We are full time Canadian residents living in Ontario Canada.
Husband is USA/Canada Dual Citizen, Wife is Canadian citizen only Wife is not a USA citizen. She has never lived, worked or paid taxes in the USA.
Husband qualified for social security based entirely off Social Security credits earned from working in the USA. Husband did not use any Canada Pension Plan credits to qualify for social security therefore did not use the totalization agreement to qualify for Social Security.
Husband is 66 years old and applied for Social Security 21 months before his full retirement age and is now receiving his early retirement reduced Social Security benefit monthly.
Husband never worked in Canada, did not pay into the Canada Pension Plan (CPP) so will not receive CPP benefits; nor does he have a Registered Retirement Savings Plan in Canada (RRSP/RRIF).
Wife will be 62 years old in August 2023. She would like to apply to begin receiving spousal social security at that time.
Our understanding is she will be eligible and will receive a benefit that is about 32.7% of the husband’s full retirement benefit amount.
My questions are:
1) Does the wife need to get a social security number to apply for and receive spousal Social Security benefits?
2) Will the Canadian wife’s Canada Pension Plan (CPP) or Registered Retirement Savings Plan (RRSP/RIFF) benefits reduce the amount of her spousal social security benefits in any way?
3) Will the wife have to file a pay USA taxes once she starts receiving Spousal Social Security?Cal & Marion
Hi. Social Security will need to assign your wife a Social Security number (SSN) in order to pay her spousal benefits. However, it sounds like she probably won't be able to apply for an SSN until she applies for spousal benefits. You might want to double check that with Social Security: https://www.ssa.gov/pubs/EN-05-10107.pdf.
No, your wife's CPP and RRSP benefits won't adversely affect her U.S. Social Security spousal benefits.
My expertise is limited to Social Security benefits, not income tax regulations. Therefore, I can't answer your third question.
Best, Jerry
