Canadian with US pension income

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formerpatriot
Posts: 67
Joined: Mon Feb 23, 2015 4:13 pm
Location: Montreal

Canadian with US pension income

Post by formerpatriot »

In 2022, I had the following pension income from the USA:
- Social Security
- Pension from a former employer for whom I worked for a few years in the late 1980s and early 1990s.
I retired in late 2021 and year 2022 was the first year for which I received such pension income.
I am not a US citizen and I have not filed a tax return with the IR since the mid 1990s.

Question 1:
It is my understanding that I am not required to file a tax return with the IRS. Where can I find an official statement to that effect?

Regarding my US Pension from my former employer, I received a 1042-S form which indicates the gross income and the federal tax withheld (which was 15% of gross income as per the Canada-US treaty).

Question 2:
Is it possible to obtain a proof from the IRS stating that they did get the income tax that my employer withheld or is the 1042-S a proof in itself?

I am asking these questions is because the CRA is asking questions about the amount that I put down on line 43100 of my T2209.
FormerPatriot in Montreal
nelsona
Posts: 18429
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian with US pension income

Post by nelsona »

1. if you have been correctly withheld, there is no need to file a 1040NR. It is probably in the instructions for 1040NR.

2. The 1042 is sufficient, you would include that in your response letter to CRA. You should also be getting something from SSA, with no tax withheld.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
ND
Posts: 295
Joined: Thu Feb 21, 2013 5:28 pm

Re: Canadian with US pension income

Post by ND »

RE:Is it possible to obtain a proof from the IRS stating that they did get the income tax that my employer withheld
Use 4506-T to request an official IRS transcript displaying 1042-S w/h
formerpatriot
Posts: 67
Joined: Mon Feb 23, 2015 4:13 pm
Location: Montreal

Re: Canadian with US pension income

Post by formerpatriot »

Thank you nelsona and ND for your replies.
Regarding my first question, I was not patient enough to read the 50-page “Instructions to Form 1040-NR” but on the IRS website
https://www.irs.gov/individuals/interna ... ent-aliens
I found an exhaustive list of the scenarios under which a nonresident alien (like myself) would have to file a 1040-NR:

1. A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during the year.
2. A nonresident alien individual who is not engaged in a trade or business in the United States and has U.S. income on which the tax liability was not satisfied by the withholding of tax at the source.
3. A representative or agent responsible for filing the return of an individual described in (1) or (2),
4. A fiduciary for a nonresident alien estate or trust, or
5. A resident or domestic fiduciary, or other person, charged with the care of the person or property of a nonresident individual may be required to file an income tax return for that individual and pay the tax (Refer to Treas. Reg. 1.6012-3(b)).

Scenario #2 is the closest to my situation but since the proper amount of tax was withheld (15% as per tax treaty), I am off the hook.
FormerPatriot in Montreal
nelsona
Posts: 18429
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian with US pension income

Post by nelsona »

You would have found this by searching the 1040NR instructions, probably on the 2nd or thitd page. These dosc are searchable, just like the IRS website is.

But, teach a man to fish....
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
formerpatriot
Posts: 67
Joined: Mon Feb 23, 2015 4:13 pm
Location: Montreal

Re: Canadian with US pension income

Post by formerpatriot »

You are right!
It’s on page 7 of the instructions for 1040-NR.
FormerPatriot in Montreal
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