BillM223
Expert Alumni

Retirement tax questions

Canada says

"39 - Superannuation or pension benefits – Periodic payments

40 - Superannuation or pension benefits – Lump-sum payments"

 

Since both of these are government "pension" payments, using form SSA-1099 is a closer fit than a 1099-R. Besides, there is a tax benefit from using the SSA-1099, because SS payments are never taxed at 100%.

 

The form with code 61 should be treated as if it were on a 1099-INT, since it is "61- Arm’s length interest payments". (See the "Canada says" link above).

 

You also asked about what exchange rate to use. The IRS generally says that whatever exchange rate you use, you have to be able to justify it. John's link above is a solid choice - it is the IRS's own listing of average exchange rates.

 

I will ask that the FAQ be updated to reflect the different answers based on the codes on the Canadian forms.

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