Mary, many thanks this makes sense. Couple clarifying questions:
1. The Federal ID you referred to is a US Federal ID, correct?
2. Since the Canadian government withheld 20% of this payment for Canadian income taxes, am I expected to pay taxes again on the full lump sum pension payment amount to the US government? Or do I adjust the dollar amounts entered in the substitute 1099-R to account for this? On the substitute 1099-R there is an a box that asks for federal tax withheld, however I assume that is US Federal tax withheld? Or do I have to complete form 1116 to request a foreign tax credit?
Best regards
