Do I need to add my Canandian pension income (NR4) ?

[KarenJ]

Yes, you need to include your Canadian pension income on you US tax return.  If the distribution was from an RRSP or RRIF, you can enter your pension information as follows:

1. Click on Federal on the left hand side of your screen in the black area
2. Click on Wages & Income
3. Scroll down (you may need to click All Income) to Retirement Plans and Social Security
   
4. Click on Show more
5. Click on Show more for Canadian Registered Pension Income.

If your pension income is not from RRSP or RRIF, then you can enter it in that section in IRA, 401(k), Pension Plan Withdrawals (1099-R) and enter your information as if you received a 1099-R.  Click on I need to prepare a substitute 1099-R.

[jrogic]

I withdrew my RRSP. After following the steps above, TurboTax asks me for
1. Total distribution
2. Taxable part of distribution

My RRSP provider withheld non-resident taxes (box 17 on NR4)

Is the answer to question 2 $0?
Or do I insert the distribution here and also apply for a foreign tax credit in deductions & credits.

Thanks in advance!
Johnny

[tconjames-atmcnet]

I am already paying the Canadian gov 15%. Do I have to pay tax on my gross proceeds or net

[tconjames-atmcnet]

that did not answer my question

[tconjames-atmcnet]

What's the answer

[KarenJ2]

You would need to pay tax on your gross proceeds and claim a foreign tax credit for the Canadian tax your paid.

In the Search box enter foreign tax credit and click on Jump to

[batvb]

 The term "pension income" can be unclear.

 For  taxation  purposes income  from the CPP (Canada Pension Plan) and OAS (Old Age  Security) are  treated the  same by the IRS as income from Social Security and  should  be  reported  as  such (added to Social  Security Income). According to the Canada - US  Tax Treaty,  no  taxes  are  withheld  by  either  country  when paid via CPP / OAS or Soc. Security to residents of the other  country,  but  taxes  are owed if ones income is  above certain base  levels, and  need to be paid to the  country of  residence.

Withdrawals (effectively  Income ) from Canadian RRSP's  (Registered  Retirement Savings Plans) and RRIF's (Registered  Retirement Income Funds), which  are similar to IRA's, do  have  taxes withheld at source by the Canadian Governenment. Taxes thus  withheld  are  elgible for a foreign tax  credit in the US  under  applicalbe rules.