Pension Income Taxed in Canada Taxed in the U.S.?

t1122 · Post by **t1122** » Mon Mar 21, 2016 2:37 pm

I am a legal resident of the U.S. my husband is a U.S.citizen. We file U.S. taxes. Last year I started receiving a small pension from Canada. Income tax was taken off in Canada NR4 was sent to me.
Do we claim this income on the U.S. tax form and pay U.S. tax on this money - being taxed twice.
How do I claim this money and pay the appropriate tax without overpaying?
Do I need to file a CDN tax form? I am not a resident of Canada nor own property or business there.

nelsona · Post by **nelsona** » Mon Mar 21, 2016 2:53 pm

The Cdn tax withheld (15% of gross) is your final Cdn obligation.

Report the income on your 1040 as pension income, and take a form 1116 credit for the Cdn tax you paid on that income.