I am a retired canadian citizen (green card holder) living in the USA. Last year, I started receiving a monthly pension from a private company (former employer before I moved to the US). I received a NR4 with revenue code 39 - Superannuation or pension benefits – Periodic payments and exemption code T - Exemption from withholding tax as a result of other exempting provisions of a tax convention, other than those given above in codes I, and P through R.
Do I report the gross amount on 16a (pension and annuities) or 20a (social security benifits)? Is the whole amount taxable?
Thank you very much for your help,
Joe
Where and how to enter NR4 in US 1040?
Moderator: Mark T Serbinski CA CPA
Re: Where and how to enter NR4 in US 1040?
[quote="jowatt"]I am a retired Canadian citizen (green card holder) living in the USA. Last year, I started receiving a monthly pension from a private company (former employer before I moved to the US). I received a NR4 with revenue code 39 - Superannuation or pension benefits – Periodic payments and exemption code T - Exemption from withholding tax as a result of other exempting provisions of a tax convention, other than those given above in codes I, and P through R.
Do I report the gross amount on 16a (pension and annuities) or 20a (social security benefits)? Is the whole amount taxable?
Thank you very much for your help,
Joe[/quote]
Do I report the gross amount on 16a (pension and annuities) or 20a (social security benefits)? Is the whole amount taxable?
Thank you very much for your help,
Joe[/quote]
First off, there is an issue with the code on your pension, if they are not withholding 15% tax for Canada. You need to contact your pension and get this straightened out, and you will need to send a check to CRA for 15% to cover 2016.
This is pesion income, line 16, and the gross should be reported on 16a abd a6b (it is 100% taxable). You then claim the 15% Cdn tax as a credit on form 1116.
If you receive CPP and/or OAS, this is NOT taxable in Canada, but is reportable on your 1040 as social security. It is usually included at 85% taxable, bit your software should be able to handle it is you say that it is social security.
This is pesion income, line 16, and the gross should be reported on 16a abd a6b (it is 100% taxable). You then claim the 15% Cdn tax as a credit on form 1116.
If you receive CPP and/or OAS, this is NOT taxable in Canada, but is reportable on your 1040 as social security. It is usually included at 85% taxable, bit your software should be able to handle it is you say that it is social security.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
OK, so you are fine for Canada.
Keep in mind when you stat collecting CPP what I said above.
If you are thinking of delaying taking CPP, don't. Adivice here is to take CPP as soon as poosible (60) before taking SS, as this will impact your SS later thru WEP. Better to take a little less now, when it has no affect on your SS. Your Cdn pension will also impact your SS
Keep in mind when you stat collecting CPP what I said above.
If you are thinking of delaying taking CPP, don't. Adivice here is to take CPP as soon as poosible (60) before taking SS, as this will impact your SS later thru WEP. Better to take a little less now, when it has no affect on your SS. Your Cdn pension will also impact your SS
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best