I'm still in the WS mode and confused by all the suggestions as to how best to report foreign pensions and take credits for foreign withholding. My best analysis after reading numerous posts is:
CPP and OAS
-no foreign tax withheld
- convert to USD
- add amount to US Social Security
- State tax (if any) will calculate correctly
Private Pension for Past Employment
- Canada issues a NR4 form
- monthly payments are subject to 15% withholding by Revenue Canada
- convert income and tax withholding to USD
- create a 1099-R in TT, the reported foreign tax withholding is automatically applied.
- use 99-0999999 and hope it efiles, if not, Snail Mail the return.
- If successfully efiled, then State tax will be calculated correctly
Question
1. When I report the Private Pension as above, TT then shows a Miscellaneous income entry equal to the created 1099-R amount. Is it double reporting? Is the tax withholding automatically applied or do I need to Claim a Foreign Tax Credit?
2. Should I enter the Private Pension instead as if it was an RRSP/RRIF pension as one poster suggested?
3. Is there a better reporting method for Private foreign pensions using TT (disk) ?
4. Is TaxACT simply better for these foreign pension situations?
