My husband is Canadian and receives pension income from a private pension plan. We were looking at doing pension income splitting here in Canada, but I first want to know what if any U.S. tax implications this would have for me.
1. If I claim part of his pension income on my Canadian return and file my
U.S. return as married filing separately, must I also declare this portion
of the pension income on my 1040?
2. If so, would I be able to claim any tax I paid in Canada for this as a
foreign tax credit via form 1116?
CAD Pension income splitting & U S tax implications
Moderator: Mark T Serbinski CA CPA
Hello,
The US won't recognize the Canadian pension income splitting rules. You simply do not need to claim the elected split portion of your husband's pension on your US return.
For what it is worth, you can claim the additional tax that you pay to Canada as "general limit" foreign tax credit.
In summary to your questions:
1. Married filing separately - you don't have to claim it.
2. You can still claim the foreign tax credit - you'll likely carry it forward to future years.
Cheers.
The US won't recognize the Canadian pension income splitting rules. You simply do not need to claim the elected split portion of your husband's pension on your US return.
For what it is worth, you can claim the additional tax that you pay to Canada as "general limit" foreign tax credit.
In summary to your questions:
1. Married filing separately - you don't have to claim it.
2. You can still claim the foreign tax credit - you'll likely carry it forward to future years.
Cheers.