Canada NR4 income code 26 periodic pension payment. Where do i report income and canada taxes paid on my US Income tax

[jshartcan1]

I am using my foreign tax credits as well .. is income reported under Canadian Pension Plan or post under social security income received?

[Carl]

All foreign income is reported under the Wages & Income tab in the Less Common Income section. Elect to start/update Foreign Earned Income & Exclusion.

All foreign taxes paid are reported under the Deductions & Credits tab (when you get to that point in the program, as you will have a ways to go) in the Estimates & Other Taxes Paid section. There's a sub-section in there specifically and explicitly for foreign taxes.

[dbtaxsolutions]

Once you entered the income, you will have to claim foreign tax credit on taxes paid abroad. 

[DJR2]

There is a major problem here.  The NR4 form shows income in boxes 16 and 26.  Box 16 is for interest earned during the year, and the corresponding box 17 show the tax paid by the investment company to the CRA, on our behalf.  Box 26 shows a capital gains amount, and the corresponding box 27 is generally blank, indicating that no tax was withheld.  This is surprising, because Capital Gains are taxable in Canada, whether the money is withdrawn or not.  In the USA, Capital Gains is only taxed after the money has been withdrawn.  It is most likely that the amount shown in box 26 has not been withdrawn, so it is not taxable in the US.  If this analysis is correct, the value is Box 26 should not be reported, because if it was reported, the TT form will show that US must be paid.  Some formal clarification by Turbo Tax, or by the IRS would be useful here.

[dbtaxsolutions]

Not necessarily, Capital gains within your portfolio is taxable as shown on some 1099B from brokerage, you may not have sold a fund, but within the fund you hold- they may have created a transaction that created capital gain, so it will appear on your tax form but one may not have actually received the cash since the fund is still invested.  Report interest in interest income and other income for other pensions, then claim foreign tax credit for taxes paid to Canada.

[DMarkM1]

Further, you can't go by whether or not those those capital gains were taxed by Canada, as withholding on capital gains, even if distributed, is not normally the case with Canadian nonresidents.  

Here is a link to great article from CA RBC Wealth Management discussing nonresident withholding on various income types.   In the capital gains discussion you will find, "Distributions of capital gains, capital gains dividends or a return of capital from Canadian mutual funds are generally exempt from Canadian non-resident withholding tax."