I'm doing a return for someone who died last year. She got two each NR4 forms with different amounts from two companies (total of 4). The Code from one company is 02 (Other periodic payments, which is a teacher's annuity payment through TIAA), the other is 44 (OAS).
I've seen several posts, mostly older that try to explain where and how to enter or use these NR4s but it's still unclear to me.
CORRECTED PART: She also has a 1099-R for the Code 02 annuity income, I guess because it comes through a US company(?), TIAA. It shows some Federal taxes deducted. The NR4 for the same income, shows minor CAN taxes withheld).
Since there is a 1099-R, do I even need to worry about the NR4 on that one? Do I just find the place for Foreign tax credits and enter the CAN taxes paid?
As for the other, it's OAS and shows no CAN taxes withheld. (UPDATE: I now see it has an Exemption Code T, which means she is exempted from CAN income tax, I think.)
Should I create a 'fake' 1099-R? I've read that the boxes don't align with NR4s so if not, how could one even do that? I've also read to create a 'fake' SSA-1099 income form.
If I search and go to Foreign Income, the questions are not relevant or specific enough and do not match this situation. This is not 'earned income'.
For the 1099R that reports the same income as one of the NR4, ignore reporting that NR4. For the remaining ones, report them as if they are social security income as described by Carolyn B in her Turbo Tax post. In fact, you may combine the remaining NR4 into one entry for simplicity purposes.
You could claim a foreign tax credit on the 1099R income where minor Canadian taxes were withheld. To claim: