Soc. Sec is deposited to her Bank - no withholding or Medicare deduction is made. She adds 85% to her Canadian Pension income amount on her Can Taxes Is she exempt from filing 1040NR?

If your aunt is a U.S. citizen or a green card holderand has OTHER sources of income along with the Social Security, there MAY be a requirement for her to file.

However, since she is apparently paying Canadian taxes on her income, it is most likely that she owes NO U.S. taxes due to the Foreign Tax Credit (Form 1116).

Thank you for your help in confirming our assessment of her situation.

Glad to help!

Thank you for your confirmation of my understanding of the Treaty & 1040NR Bill