No. Whatever foreign taxes withheld on a Canadian Pension is paid to the Country of Canada. You will stay need to pay US taxes on the same retirement pension.
You may be able to claim a foreign tax credit for the taxes paid in Canada. Here is how you will request to claim a foreign tax credit in Turbo Tax for the taxes paid to Canada.
- Click on Federal Taxes > Deductions & Credits [
- Scroll down to the Estimates and Other Taxes Paid section.
- Click START on the box next to Foreign Taxes.
- Continue
- Did you pay taxes on income outside the U.S.? Click Yes, I did..
- Continue
- Continue
- Foreign Taxes, click Continue
- Deduction or Credit? Most people choose the credit since so few itemize deductions. You can try it both ways and determine what is best for you. Select an option.
- Continue to enter the information requested on the screens.
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