Pension from Government of Canada employment, how????
Moderator: Mark T Serbinski CA CPA
Pension from Government of Canada employment, how????
How is Pension Income from Government of Canada employment treated by CRA and by IRS?
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- Posts: 30
- Joined: Fri Jan 08, 2010 12:11 pm
- Location: Victoria BC
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The answer to your question depends on whether your a Canadian resident (maybe also US taxpayer) or US resident:
Canadian resident and US taxpayer: pension income is taxed on both tax returns and you'll claim a foreign tax credit on your US return for the taxes paid on the pension for Canadian purposes
US resident: Payer of pension should be withholdling 25% at source and you can use this tax to calculate your foreign tax credit for US purposes via form 1116.
Canadian resident and US taxpayer: pension income is taxed on both tax returns and you'll claim a foreign tax credit on your US return for the taxes paid on the pension for Canadian purposes
US resident: Payer of pension should be withholdling 25% at source and you can use this tax to calculate your foreign tax credit for US purposes via form 1116.
Phil Hogan, CA, CPA (Colorado)
Cross-border investment advisor
http://philhogan.com
250-661-9417
Victoria BC
Cross-border investment advisor
http://philhogan.com
250-661-9417
Victoria BC
Pension income will be 100% taxed in US. Only WAGES from Cdn govt are tax-free in US.
So, your pension will be taxed 15% in canada, flat.
You will report 100% of the pension on your 1040, and get credit for the 15% tax you paid in canada.
So, your pension will be taxed 15% in canada, flat.
You will report 100% of the pension on your 1040, and get credit for the 15% tax you paid in canada.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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- Posts: 30
- Joined: Fri Jan 08, 2010 12:11 pm
- Location: Victoria BC
- Contact:
Yes, I incorrectly assumed a lump sum payment.
As Nelsona notes, periodic pension payments will be 15%.
As Nelsona notes, periodic pension payments will be 15%.
Phil Hogan, CA, CPA (Colorado)
Cross-border investment advisor
http://philhogan.com
250-661-9417
Victoria BC
Cross-border investment advisor
http://philhogan.com
250-661-9417
Victoria BC