Pension Splitting

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blairgoates
Posts: 48
Joined: Thu Apr 14, 2011 12:35 pm

Pension Splitting

Post by blairgoates »

If a USC splits pension income with spouse on Canadian return then does the USC on U.S return claim entire income received ? This would result in insuffiecient ITC'S and U.S tax oweing...correct ?
nelsona
Posts: 18680
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

The USC (if filing separately) must claim the entire pension on his 1040, but can only claim the Cdn tax he actually pays after the splitting.

The solution is to either not split (or split asmaller ammount that would yield sufficent Cdn tax in your name), or, maybe simpler, file a joint US return.
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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