How to enter income from NR4 code 39 on US tax return

Forum|Forum|3 years ago
March 11, 2023
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I am a US citizen living in the US. I worked in Canada for a private employer in the past and started to collect a small pension in 2022. I am using TurboTax Deluxe and would like to understand in detail how to enter the income reported in the NR4 form with code 39 that I just received from the payer. This is not a pension from the government but from a private employer. I have read several posts on the subject, mostly from 2019, that suggest entering this income using a 1099-R, others talk about using a substitute 1099-R, others suggest 1099-S, and others to enter this as Miscellaneous. I am not sure which one is applicable to my case. I tried 1099-R but there is no match between the fields in the NR4 form and the 1099-R. Also the 1099-R asks for a Federal ID of the payer, but the payer is in Canada. Is there any updated information on how to do this for filing taxes in 2022? Also, I understand that in order to avoid double taxation I need to file form 1116. Will TurboTax add form 1116 automatically if I choose to use Foreign Tax Credit? Your help is much appreciated.

ErnieS0

Level 15

There is no update. Enter your NR4 code 39 as a 1099-R as Tax Expert Alumni DianeC958 suggests in Filing 1099-R for Canadian Retirement Income (RMD).

She suggests using 11-1111111 as the federal tax number.

The boxes will not match. Use Gross Income from your NR4 as Gross Distribution (line 1) and Taxable Amount (line 2a) on the 1099-R screen.

Covert your amounts to U.S. dollars. See Yearly Average Currency Exchange Rates.

TurboTax will not automatically add Form 1116. To claim a foreign tax credit or deduction:

Type foreign tax credit in Search (magnifying glass) in the upper right corner
Select Jump to foreign tax credit
Complete the screens to claim either the credit or deduction

For more help: Where do I enter the foreign tax credit (Form 1116) or deduction?

Use the non-resident tax withheld (converted into U.S. dollars) from Form NR4.

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