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Angie, Tax Preparer
Category: Tax
Satisfied Customers: 226
Experience:  Bookkeeping, Profit and Loss, Balance SheetsAll types of US Taxes, Tennessee taxes, Personal, business, payroll, sales tax etc.
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I am a Canadian citizen who lived in US yrs. I now

Customer Question

I am a Canadian citizen who lived in US for 16 yrs. I now receive a pension from Teachers Retirement in Texas for which I filed a W8Ben to withhold 15% as I reside in Ontario now & no longer hold a permanent resident card. Since I have paid tax on that money, do I also have to pay tax again on the same money in Canada. Can I get a credit for taxes paid already?
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Submitted: 1 year ago.
Category: Tax
Expert:  Angie replied 1 year ago.

Generally money contributed to pension does not have tax paid on it. You pay the tax when you begin taking withdrawals from the fund.

However, that being said...there is a US/Canada tax treaty that prevents double taxation. But... retirement benefits are usually funded with "pre-tax" money so there would have been no Federal Income Tax paid on this money, (only Social Security and Medicare, but you will be able to utilize these during retirement)

You should file a new W8Ben and ask for zero withholding, because the only way to get these funds back after it is withheld would be to file a US tax return to request refund. Being a Canadian citizen, there will be no need for that.