Foreign pension income - General
Your 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:
http://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-115-other-pensions-superannuation/line-115-pensions-a-foreign-country.html
Revenu Québec:
http://www.revenuquebec.ca/en/citizens/your-situation/income-earned-outside-quebec/pension-from-a-foreign-country/
ID: 20191121083849MAX.xml
Webpage: KPA360-20191121083849MA.htm
