How do i get rid of error message on Payer Federal ID number on 1099 R since no number exists because its a Canadian pension payer ?

[pmgallagher]

I wonder if the issue you have is to do with the reporting of the tax withholding.  We report our UK (private) pension payments on a cash basis, only reporting the tax withheld and paid to UK Inland Revenue when I succeed in getting them to release the withheld funds to us.  UK private pensions paid to US tax residents are to be taxed entirely in the US.  So if the UK withholds tax from our pensions, we don't report that immediately to the US IRS, we wait until we've received it back from the UK.  Eventually we can complete a form that the UK accepts as proof that we're US taxpayers paying tax on these pensions in the US, and that brings UK withholding to an end.  I have no idea if the same rules apply to Canadian private pensions received by US tax-payers.   But if the rules ARE similar then I'd imagine that the tax withholding reported would cause a mismatch in the IRS system and cause an issue to be flagged?  

[Robert1040]

Thanks.  I'll check into that.  But I seem to doubt Canada Revenue would go along with allowing the full gross to go to the US and forgoing the withholding on pension funds that were funded with  before tax contributions.  They will want the tax, same as they would if the recipient were Canadian and still a Canada resident paying the tax on gross.  Hmmmmm.    I think Canada will get the tax, my wife will get the net and the US will give a credit for the tax withheld.  On my return I filed it as a 1099R, reported the gross amount is USD, the withholding in USD.  It tallied like a regular 1099.  I would have reported the gross on a 1099 and then filed a  Form 1116 to get a Foreign Tax Credit, but that seemed awkward it reporting the gross and withheld on separate forms.  (The Foreign Tax Credit could actually be more beneficial to me as it would reduce the tax liability more than reporting withholding the 1099.)  Bottom line I believe TurboTax should be more helpful here...

[Sheila29]

Yes, thank you John. It worked for my 2023 return!

[Bisso Steve]

FYI.

The trick is still good for the 2024 version. Thanks again.

[Canning28]

I have the same issue - IRS is reviewing the taxes deducted from my 2023 Canadian pension. Still waiting on a response.

I'm not sure how to enter these into turbo tax for 2024. Currently Turbo tax provides no direction - open to suggestion

[CatinaT1]

What type of form are you entering? Is it a 1099-R? Have you tried using 99-0999999 for the payer id?

[Canning28]

Yes, that worked.  The actual form is a NR4 - I've been told to treat it as a 1099.

I followed this advice for my 2023 Tax return & the IRS rejected the foreign taxes withheld related to this NR4.   I'm currently disputing with the IRS. 

I'm concerned that if I do the same thing year - the IRS will again reject. Any suggestions as to the best way to report this foreign income along with the taxes paid/withheld.

[Vanessa A]

This is another way to enter your Canadian Pension.  Follow the instructions in the link by DaveF1006