Received NR4 from Canada with code 40 living in the U.S.

Forum|Forum|6 years ago
February 5, 2020
1 reply
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I received NR4 form as I worked in Canada a year ago where I contributed to my pension plan. However, since I left the company and am living in the U.S., I got NR4 with code 40 (lump sum). How should I go filing my taxes?

Will this be considered 1099 - R? SSA 1099? or simply a foreign income?

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KarenJ2

Level 13

You should enter your Canadian pension distribution as if you received a 1099-R.

After entering your pension income (don't forget to convert first to USD) then enter your foreign tax paid to help offset any double taxation.

To report the Canadian tax paid on your pension:

Enter foreign tax credit in the search box at the top of the page and click the Jump to link
Click 'Yes" you paid foreign taxes
Click through the screens regarding foreign interest and dividends
Click yes that you have reported all your foreign income already in TurboTax
Click that you want to take a credit
Answer question about the Simplified Limitation Election
Choose income type for pension - it will be General category income
Add Canada
Enter description - Canadian pension
Enter Income amount that you previously reported under 1099-R
Enter your taxes you paid on your Canadian pension in the box "Other income"

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Laromarie

Level 2

Hi, I have received an NR4 from Canada with code 40. I am younger than 50 years old. I was a Canadian Government employee that as to resign. Which code of 1099-R should I use? Will I be penalized for early withdrawal? The full amount is taxable? Should I use miscallenous income or 1099-R? Thank you!

ReneeM7122

Level 9

It depends. If there is an early withdrawal penalty, it would come from the Canadian side. Here's a link to TurboTax Canada.

To enter foreign pension in TurboTax online program, you will you would NOT treat it as "other income," rather, you will create a mock form 1099-R.

Within your Personal Tax section, Under Retirement Plans, select the IRA, 401(k), Pension Plans (1099-R).

On screen, Your 1099-R, answer Yes and select Continue
Next screen, Choose your bank or brokerage, select I'll type it in myself
On the screen Tell Us Which 1099-R You Have, check the box I need to prepare a substitute 1099-R and follow the prompts.