Get your taxes done using TurboTax

It depends. I shall address each question individually but I will explain the process in the very last point. 

1. You do need to report this as US income. You may claim the tax that was withheld as a foreign tax credit.
2. Since the check was issued in 2020, you will report this on your 2020 return even though you did not cash your check until 2021.
3. As a best practice, you should report the currency exchange rate on the the date the check was issued.

Here is how to report. You will report the income first and then claim your foreign tax credit.

1. Log in or open Turbo Tax.
2. Go to federal>income and expenses>retirement plans and social security>show more (if using Turbo Tax online)
3. Go to Canadian Registered pension and report it.

To claim the Foreign Tax Credit.

1. Log in or open Turbo Tax
2. Go to federal>deductions and credits>estimates and other taxes paid>show more (if using turbo tax online).
3. Select Foreign Tax Credit or Foreign Taxes (if using the software)
4. Answer the questions. Be sure when you get to the area where it says Gross income, list the full amount of the pension here or else you won't receive the credit. Many people make this mistake.
5. Also when the program asks for the category of income, indicate this is income resourced by treaty.
6. Sometimes this section gets a little confusing so if do have questions regarding navigation, just reach out to us. We are here to help.