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Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 3537
Experience:  3+ decades of varied tax industry exp. Tax Biz owner
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BACKGROUND: I file the 1040NR and I am a Canadian living in

Customer Question

I file the 1040NR and I am a Canad***** *****ving in Canada commuting to US for employment each day. I have 1099-R income and taxes withheld on US side.
Do I have to report the 1099-R income separately as as "Other Income" on Canadian T1 or is it just passed thru embedded in the US Foreign Income and Foreign Taxes Paid that are reported on the T1?
Thanking you in advance, Bruce
Submitted: 2 years ago.
Category: Tax
Expert:  Tax.appeal.168 replied 2 years ago.

To be sure that we are on the same page, you have pension, annuity, or related income from the U.S. that is reported to you on the 1099-R and taxes are being withheld from that income. Is this correct? My understanding of your question is that you would like to know if you have to report the U.S. 1099-R income on the T1? Is this correct? Please clarify.

Expert:  Tax.appeal.168 replied 2 years ago.

In the event you are asking what I think you are, the answer is yes, you will need to report this on the T1. SEE BELOW:

If you received a pension from another country, you must report the total amount on your return in Canadian dollars. Use the Bank of Canada exchange rate in effect on the day you received the pension. If you received the pension at different times during the year, use the average annual rate. The average monthly rate and the daily rate are available by visiting the Bank of Canada website.

Attach a note to your paper return identifying the type of pension you received and the country it came from. In some cases, amounts you receive may not be considered pension income, and you may have to report it at a different place on your return.

If there is a tax treaty with the country your pension is from, you can claim a deduction on line 256 for the part of your foreign pension income that is tax-free in Canada.

If you paid foreign taxes on your pension, you may be able to claim a foreign tax credit when you calculate your federal and provincial or territorial taxes (see line 405). Do not subtract the taxes from your income when you report it.


Let me know if you require further assistance with this matter.