Confused

[joevegas 67]

Hi, hope someone can help me here, I'm a US permanent resident formally living in Canada, I began receiving a company pension from my former employer in Canada last January.It is now tax time, my question is...I'm being taxed in Canada on my company pension, will I have to pay taxes again here in the states? Do I fill out a Canadian tax form since the earnings are Canadian?..Is there a place on the U.S.A. tax form to declare your pension from Canada?...Not sure how to handle this. Thanks in advance for any help I may receive.

[payxibka 10,045]

3 minutes ago, joevegas said:

Hi, hope someone can help me here, I'm a US permanent resident formally living in Canada, I began receiving a company pension from my former employer in Canada last January.It is now tax time, my question is...I'm being taxed in Canada on my company pension, will I have to pay taxes again here in the states? Do I fill out a Canadian tax form since the earnings are Canadian?..Is there a place on the U.S.A. tax form to declare your pension from Canada?...Not sure how to handle this. Thanks in advance for any help I may receive.

You must declare your worldwide income on your US tax form.  If it is taxed in Canada then you won't be "taxed again" but you might owe taxes in addition to what was paid in Canada if for example, the US tax rates are higher.  Line 21 of the 1040 is where this is reported.  Then look to form 2555

 

https://www.irs.gov/newsroom/seven-tax-tips-about-reporting-foreign-income

[Sukie 1,464]

21 minutes ago, joevegas said:

Hi, hope someone can help me here, I'm a US permanent resident formally living in Canada, I began receiving a company pension from my former employer in Canada last January.It is now tax time, my question is...I'm being taxed in Canada on my company pension, will I have to pay taxes again here in the states? Do I fill out a Canadian tax form since the earnings are Canadian?..Is there a place on the U.S.A. tax form to declare your pension from Canada?...Not sure how to handle this. Thanks in advance for any help I may receive.

I would hope you could find a tax accountant who is familiar with your situation.  The reason I say this is because my spouse has a pension (called a superannuation fund - much like the US's 401k) from Australia.  In Australia, getting distributions from a pension are tax-free, but the US does not recognize her superannuation as tax-free.  The IRS considers her super fund a "foreign trust".

 

We report the amount of the funds annually via the FBAR report, but she has not taken any funds out yet, as we were hoping the tax laws would change before she starts to draw from it when she reaches the age where she MUST take distributions.

 

I recommend you consult a tax accountant - as the US may not consider your pension fund the same as "earned income" and you might be taxed at a different rate.

 

Good luck.  The US is only one of THREE countries in the world who tax on world-wide income....

 

Sukie in NY

[joevegas 67]

2 hours ago, Sukie said:

I would hope you could find a tax accountant who is familiar with your situation.  The reason I say this is because my spouse has a pension (called a superannuation fund - much like the US's 401k) from Australia.  In Australia, getting distributions from a pension are tax-free, but the US does not recognize her superannuation as tax-free.  The IRS considers her super fund a "foreign trust".

 

We report the amount of the funds annually via the FBAR report, but she has not taken any funds out yet, as we were hoping the tax laws would change before she starts to draw from it when she reaches the age where she MUST take distributions.

 

I recommend you consult a tax accountant - as the US may not consider your pension fund the same as "earned income" and you might be taxed at a different rate.

 

Good luck.  The US is only one of THREE countries in the world who tax on world-wide income....

 

Sukie in NY

Thanks for your suggestion...

2 hours ago, payxibka said:

You must declare your worldwide income on your US tax form.  If it is taxed in Canada then you won't be "taxed again" but you might owe taxes in addition to what was paid in Canada if for example, the US tax rates are higher.  Line 21 of the 1040 is where this is reported.  Then look to form 2555

 

https://www.irs.gov/newsroom/seven-tax-tips-about-reporting-foreign-income

Thanks for the information..

[jle2234 68]

If your taxes have not been automatically deducted, it would benefit you to file and pay taxes in one country prior to filing in the other.

 

When my husband (USC) was living in Canada (Canadian permanent resident), he had revenue one year from selling stocks. Taxes were not deducted automatically, so we knew we'd owe. However, we filed our Canadian and U.S. taxes at the same time... and BOTH countries claimed we owed them the taxes on the stock sales! It took us months to sort it out.

 

I was told later that we wouldn't have had the issue if we had filed and paid that taxes in the U.S. (where the income was earned), and then filed the Canadian taxes with the U.S. taxes already paid.

[NikLR 13,227]

Just a note, you may want to figure out your status... if you're living in Canada are you really a US LPR?

[Flames9_RN 358]

A decent forum on USA & Canada taxes is https://forums.serbinski.com/viewforum.php?f=2    the dude that answers 99% of the questions is Nelsona..appears to be fairly knowledgeable.

[joevegas 67]

19 hours ago, NikLR said:

Just a note, you may want to figure out your status... if you're living in Canada are you really a US LPR?

Thanks for your answer...But where did I ever say I was living in Canada?

[joevegas 67]

8 hours ago, Flames9_RN said:

A decent forum on USA & Canada taxes is https://forums.serbinski.com/viewforum.php?f=2    the dude that answers 99% of the questions is Nelsona..appears to be fairly knowledgeable.

That was very helpful...Thank you very much.

[Flames9_RN 358]

make sure u do a search first...he used to get  a bit grumpy if you didnt,lol

[NikLR 13,227]

On 2/24/2018 at 10:26 AM, joevegas said:

Hi, hope someone can help me here, I'm a US permanent resident formally living in Canada, I began receiving a company pension from my former employer in Canada last January.It is now tax time, my question is...I'm being taxed in Canada on my company pension, will I have to pay taxes again here in the states? Do I fill out a Canadian tax form since the earnings are Canadian?..Is there a place on the U.S.A. tax form to declare your pension from Canada?...Not sure how to handle this. Thanks in advance for any help I may receive.

Here... 

[NikLR 13,227]

Did you mean formally from? Formally as in past tense? Not formally as in officially?