US RESIDENT RECEIVING CANADIAN AIRLINE PENSION
Moderator: Mark T Serbinski CA CPA
US RESIDENT RECEIVING CANADIAN AIRLINE PENSION
Is income received from a Canadian Airline pension by a US resident subject to the same rate of tax as regular US income. The withholdings will be 15% in Canada. Are there any reductions or deductions that may be applied? All the income was earned outside of the U.S. if it makes any difference.
It is regular income, reported in full on line 16a and 16b of your 1040.
The 15% tax is to be used as a credit on form 1116, or as a deduction on Schedule A. Likley the credit will yield the best result.
The 15% tax is to be used as a credit on form 1116, or as a deduction on Schedule A. Likley the credit will yield the best result.
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
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Mark T Serbinski CA CPA
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... and it will be taxable in the U.S. to the same extent it would have been taxable to you if you were a resident of Canada.
That means that if a portion of your pension would have been tax exempt in Canada, that same portion is deemed to be tax exempt in the U.S., regardless of where you worked (since the pension originates in Canada).
That means that if a portion of your pension would have been tax exempt in Canada, that same portion is deemed to be tax exempt in the U.S., regardless of where you worked (since the pension originates in Canada).
Mark