rrongve
New Member

Canadian Pension income

Hi.  I have a 2016 NR4 for Canadian Pension income.  I was able to enter the income but I am not able to receive the foreign tax credit for taxes withheld.
PatriciaR
New Member

Retirement tax questions

Did you enter the information for the foreign tax paid "separately" from the income?
PatriciaR
New Member

Retirement tax questions

To enter the NR4, treat it as if it is a SSA-1099 and enter it in the Retirement Plans and Social Security section, under ‘Social Security (SSA-1099, RRB-1099)’.

 Then, go to the Deductions and Credits section and select Foreign Taxes under ‘Estimates and Other Taxes Paid’ to enter any foreign tax you already paid to Canada on that income.

 For more info specific to the US/Canadian tax treaty, please see http://www.irs.gov/pub/irs-pdf/p597.pdf


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Retirement tax questions

I understand that CPP and OAS benefits from the Canadian Government should be treated the same as Social Security payments under the US/Canadian Tax Treaty.  They should be entered as another SSA-1099.  How do I enter payments from private Canadian pension plans?

ErnieS0
Expert Alumni

Retirement tax questions

Foreign pensions are reported in a similar way as US pensions @Gary3913. You will have to convert the amounts to US dollars, prepare a substitute 1099-R in TurboTax and claim as tax withheld in foreign taxes as discussed above.

 

To enter a foreign pension:

  • Type "1099-r" in Search in the upper right
  • Select "Jump to 1099-r"
  • Say YES to Did you get a 1099-R in 2021?
  • Continue past Get ready to be impressed
  • On Let's import your tax info, chose the bottom option Change how I enter my form
  • On How to you want to enter your 1099-R? click Type it in myself
  • On Who gave you a 1099-R? select Financial institution or other provider (1099-R)
  • Enter your 1099-R provider's info. For the Payer's TIN users have had success with 00-0000000 or 99-0999999
  • On Enter your 1099-R details use 7 as the Box 7 Distribution code
  • Do not check the IRA box. This is a qualified pension.
  • On Do any of these situations apply to you? check I need to file a substitute W-2 and complete the information
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Retirement tax questions

Great response!!  I tried both Payer's TIN numbers you suggested.  00-0000000 did not work, but 99-0999999 did work as it accepted the number.  That form is now showing as complete with no errors.  Thanks so much for the guidance.  As soon as Form 1116 is ready for use, I will be ready to file.  I suspect I will not be able to e-file either federal or state returns, but I can live with that.