foreign pension taxed at origin

[Carastefan]

How should I complete the questionnaire to avoid double taxation for the foreign pension charged at origin?

Since 2014 has been double taxed, by using Ufile.

[clw]

How foreign pensions are taxed in Canada depends on the specific tax treaty between Canada and the other country. 

[Geo123]

Hello Carastefan,

1. On the "Left side menu on the Interview tab" select "Interview setup".

2. On the page that appears on 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 on 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 generated page, 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, enter the name of the country according to 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 part or the entire pension is exempt from tax under an agreement or a tax agreement concluded between that country and Quebec or 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, for the line "Income exempt under a tax treaty (leave blank for US social security benefits)", enter the amount.

This amount will be reported on line 25600 of the federal return and line 297 of the Quebec return. The code 12 will be entered on Quebec line 296.

This income will be generated by the program on lines 11500 of the federal return and 122 of the Quebec return for residents of that province.

For more details, please consult the CRA's website, as well as Revenu Québec's website if applicable, via the following links:

CRA foreign pension:

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/guidance-taxpayers-requesting-tax-treaty-relief-cross-border-pension-contributions.html

[Carastefan]

Thak you, cristal!

[chanden]

hello, I have entered the information in UFILE respect of my Pension from the UK amount received and tax deducted. yet I am still getting an error message . what am i doing wrong. selected the country also and stated what kind of pension it is.

thank you

[Geo123]

Hello chanden,

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 on the Interview tab" select "Interview setup".

2. On the page that appears on 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 on 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 generated page, 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, enter the name of the country according to 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 part or the entire pension is exempt from tax under an agreement or a tax agreement concluded between that country and Quebec or 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, for the line "Income exempt under a tax treaty (leave blank for US social security benefits)", enter the amount.

This amount will be reported on line 25600 of the federal return and line 297 of the Quebec return. The code 12 will be entered on Quebec line 296.

This income will be generated by the program on lines 11500 of the federal return and 122 of the Quebec return for residents of that province.

For more details, please consult the CRA's website, as well as Revenu Québec's website if applicable, via the following links:

CRA:

https://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:

https://www.revenuquebec.ca/en/citizens/your-situation/income-earned-outside-quebec/pension-from-a-foreign-country/