Retirement tax questions

You will file a joint tax return and include all worldwide income. Once your Canada return is done, you can use that tax liability on your US return to claim a credit for foreign taxes on the double taxed income.

Income that is exempt by the treaty can be subtracted back out. Follow these steps for those items:

Subtract exempt income

1. go to the federal income section
2. scroll to the bottom
3. Miscellaneous Income, 1099-A, 1099-C, Start
4. Scroll to the bottom
5. Other reportable income, Start
6. Other taxable income?
7. Select YES
8. Description  - treaty exempt income
9. Amount, enter negative sign and amount
10. Continue

The form 8833 may not be required. Claiming Tax Treaty Benefits states:

The payee does not have to file Form 8833 for any of the following situations:

1. The payee can claim a reduced rate of withholding tax under a treaty on interest, dividends, rent, royalties, or other fixed or determinable annual or periodic income ordinarily subject to the 30% rate.
2. The payee can claim a treaty exemption that reduces or modifies the taxation of income from dependent personal services, pensions, annuities, social security and other public pensions, or income of artists, athletes, students, trainees, or teachers. This includes taxable scholarship and fellowship grants.
3. The payee can claim a reduction or modification of taxation of income under an International Social Security Agreement or a Diplomatic or Consular Agreement.
4. The payee is a partner in a partnership, or a beneficiary of an estate or trust and the partnership, estate, or trust reports the required information on its return.
5. The payments or items of income that are otherwise required to be disclosed total no more than $10,000.

The income types you get will determine the forms you enter. Bank interest will go on a 1099-INT. Stock dividends will go on a 1099-DIV. If you have an NR4 and reply with codes, we can help you with the input. The goal is to match up the type of income with the same reporting used here.