Foreign pension income - GeneralYour foreign pension may qualify for a tax deduction under the terms of a treaty signed between Canada and the originating country. If you do not know whether any part of your foreign pension is tax exempt, contact the CRA.
To enter the amount of your foreign pension income, follow the steps below:
1. On the left side menu of the "Interview tab" select "Interview setup".
2. On the page that appears to the right, go to the "Investment income and expenses" group, check the box "Foreign income and foreign property (T1135)" and click on "Next" at the bottom of the page.
3- Return to the left side menu of the "Interview tab" and select "Foreign income and property".
4- On the screen to your right, click on "Foreign pension income (includes U.S social security benefits)".
5. On the new page that is generated, go to the line "Country from where you received the foreign income". If your country signed a tax treaty with Canada, a deduction under 20(11) will not be allowed. Select the name of the country from the list generated by the program.
6- For the line "Type of foreign pension income", choose the income that corresponds to your situation from the drop-down menu on your right.
7- For the line "Amount of foreign income received", enter the amount you received.
If all or part of your pension is exempt from tax under a tax agreement concluded between that country and Canada, you can claim a deduction for income not taxable under a tax treaty. The International Tax Services Office of the Canada Revenue Agency can inform you about these tax treaties and arrangements.
8- Once this information is obtained, enter the Income exempt under a tax treaty (leave blank for US social security benefits)".
This amount will be reported on line 25600 of the Federal return and line 297 of the Quebec return. Code 12 will be entered on Quebec line 296.
The income will appear on lines 11500 of the Federal return and line 122 of the Quebec return.
For more details, please consult the CRA's website, as well as Revenu Québec's website if applicable, via the following links:
CRA:
Revenu Québec:
ID: 20191121083849MAX.xml
Webpage: KPA360-20191121083849MA.htm