Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jan 13, 2025 7:34:53 AM

How do I report my retirement income in Canada now that I'm a permanent US resident in TN? Which version if Turbotax do I use?

It's reported on T4 slips from the Canada Pension Plan.

0 3 2759
3 Replies
Employee Tax Expert
Jan 14, 2025 11:01:55 AM

Retirement income is reported on a form 1099-R. Since you won't have that form for your Canadian retirement income, you will need to enter a substitute form 1099-R in TurboTax.

 

 

Your gross pension income is reported in box 1 and the taxable amount goes in box 2. You will need to choose an appropriate code for the type of distribution for box 7. 

 

Deluxe TurboTax would be your best choice if you are going to download TurboTax to your computer. If you are working online, you can start with the free option as you will be upgraded as is necessary when you go to enter your tax information. 

 

 

New Member
Feb 13, 2025 7:29:14 PM

Do I report the Canadian income tax deducted on my 1099 also?

Employee Tax Expert
Feb 14, 2025 7:58:39 AM

You wouldn't report the foreign taxes while entering the pension income on the Form 1099-R entry. You can take a deduction or a credit for foreign taxes paid. The credit is usually better but it is limited to the amount of US tax you pay on your foreign income each year. Any unused credit can be carried over to the next year.

 

Choose the Foreign Taxes option under Estimates and Other Taxes Paid, in the Deductions and Credits section of TurboTax:

 

 

Indicate that you need to complete Form 1116 when asked. It's usually better to take the foreign "Credit" option over the "Deduction." Choose the countries you paid the taxes to. 

 

Indicate that you have already entered your 1099/K-1 forms with foreign taxes paid. Choose the passive income option . Assign a country for your income and report the foreign income amount and foreign taxes paid when requested.