Dual Citizen Residing and Working in USA

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.

Moderator: Mark T Serbinski CA CPA

Post Reply
Posts: 1
Joined: Thu Feb 04, 2021 5:00 pm

Dual Citizen Residing and Working in USA

Post by TooConfused »

I am dual Canada Us citizen. Resided in Canada for 17 years as only Canadian citizen. Moved to US in 2013 as permanent resident and now a US citizen too and working and living in USA
I started receiving private Canadian pension and would like to know whether I have to report this income to IRS. 2020 income is less than CAD 4K
Posts: 53
Joined: Fri Mar 18, 2016 9:17 am

Re: Dual Citizen Residing and Working in USA

Post by nirvana_1959 »

As a US person (i.e, US tax resident ) you have to report world wide income. Of course the treaty opens up lot of exceptions. Read IRS pub 597. I see this paragraph (see below) in 597 pertaining to your question:

Pensions, Annuities, Social Security, and Alimony

Under Article XVIII, pensions and annuities from Canadian sources paid to U.S. residents are subject to tax by Canada, but the tax is limited to 15% of the gross amount (if a periodic pension payment) or of the taxable amount (if an annuity). Canadian pensions and annuities paid to U.S. residents may be taxed by the United States, but the amount of any pension included in income for U.S. tax purposes may not be more than the amount that would be included in income in Canada if the recipient were a Canadian resident.

Pensions. A pension includes any payment under a pension or other retirement arrangement, Armed Forces retirement pay, war veterans pensions and allowances, and payments under a sickness, accident, or disability plan. It includes pensions paid by private employers and the government for services rendered.
Pensions also include payments from individual retirement arrangements (IRAs) in the United States, registered retirement savings plans (RRSPs) and registered retirement income funds (RRIFs) in Canada.

Pensions do not include social security benefits.
Posts: 16806
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Dual Citizen Residing and Working in USA

Post by nelsona »

The pension should be being withheld 15% in Canada. Make sure of that.
Then also report the income in US as pension, and use the 15% as a credit on form 1116 (general limitation income).
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D
Post Reply