Foreign pension income - U STo enter the amount of your U.S. pension income, please follow the steps below:
1. On the left-side menu of the "Interview tab", please select "Interview setup".
2. On the page that appears to the right, go to the "Investment income and expenses" group and check mark the "Foreign income or 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 & property".
4. On the right-hand side of the screen, choose "Foreign pension income (includes U.S. social security benefits)".
5. On the page that appears, on the line ''Country from where you received the foreign income. If the country signed a tax treaty with Canada, a deduction under 20(11) will not be allowed", enter ''United States (tax treaty with Canada)''. Then, under "Description of the source of income", enter ''Pension'' as well as the "Exchange rate to apply".
6. Then, go to the line "Type of foreign pension income", and in the drop-down menu, choose the option that reflects your tax situation;
- According to the tax treaty between Canada and the United States, you can claim a deduction of 15 % of social security benefits from the United States, including bonuses paid to US Medicare. In this case, choose "United States social security benefits (15 %)".
- If you were a resident of Canada and have received benefits from U.S. Social Security continuously from the period before January 1st, 1996, then, from the drop-down menu, choose "United States social security benefits (50 %)".
The deductible amount will be entered by the program on line 256 of the Federal return and on line 297 of the Quebec return, and code 12 will be entered on Quebec line 296.
For more details, please refer to the CRA's website via the following link:
ID: 20191128163105MAX.xml
Webpage: KPA360-20191128163105MA.htm