Cross border pension

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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AF129
Posts: 2
Joined: Fri Nov 29, 2019 12:31 pm

Cross border pension

Post by AF129 »

I'm a US citizen now also Canadian citizen and worked for a school district(non teaching) for many years in Oregon. Left that job and moved to Canada in 2000 to get married. Have not worked since except for the first year which I filed US taxes for even tho I didn't make enough to. Health has not allowed me to since. We do not own a home, and we don't have any FBAR filing requirements. No big savings.
I want to start drawing on my Oregon pension soon. I know IRS will probably take an amount so can I file something so it's 15% withholding but not more? I'll be 59 years old by the way.
Then I assume I file a 1040NR? Or a regular 1040, I used the regular 1040 before.
Then on my Canadian return is where I'm most confused, I'll be setting a portion aside to pay the taxes that will be due, i just can't seem to figure out exactly where and how to report it.
Line 115? Any advice or a pointer in the right direction would be appreciated.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Cross border pension

Post by nelsona »

Your pension will be withheld, likely 15% (it could be zero), but you need to file a US 1040 (not 1040NR) in any case because you are a US citizen. Then the tax you ultimately calculate on this pension income will be used on your Cdn return as a credit.

US Pension income (and the associated tax) is eligible for pension splitting in Canada.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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