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    pierrept's Avatar
    pierrept Posts: 3, Reputation: 1
    New Member
     
    #1

    Jan 20, 2011, 05:09 AM
    Tax usa-canada pension
    My mother is a canadian citizen leaving in Canada receiving USA pension from RRB .

    Both country Canada (25%) and USA ( 30% )claim income tax on is check since 10 years now and for me is not fair .

    She 84 years old and I send many letters to RRB but the problem is not fix

    What I should do to stop that

    Thank
    tickle's Avatar
    tickle Posts: 23,796, Reputation: 2674
    Expert
     
    #2

    Jan 20, 2011, 05:31 AM

    Canadians have to pay tax on all income and Old Age Security and Canada Pension are considered income. Why do you think she should not pay tax at 84. My mom paid tax on her Canadian benefits until she died at 95. Age has nothing to do with what you pay tax on. She is lucky she has benefits from the USA as well as her Canadian Pension.

    Tick
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #3

    Jan 20, 2011, 01:05 PM
    If the return is being prepared properly, you should claim a Foreign Tax Credit on EITHER the U.S. return or the Canadian return for the taxes paid to the other government.

    Since she lives in Canada, she should claim that credit on her Canadian tax return to avoid double taxation.

    If that has not been done, she probably can amend her returns for the past several years to claim the credit. If, for some reason, this is NOT possible on her Canadian return, she can DEFINITELY amend her U.S. tax returns for 2007, 2008 and 2009 to claim the Foreign Tax Credit using Form 1116.

    Email me at [email protected] if you need professional help with the U.S. tax return amendments.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #4

    Jan 20, 2011, 02:40 PM
    If so, it is news to me. I have been providing my email address almost since the day I started offering advice on this forum, and NONE of the forum managers have ever objected.
    tickle's Avatar
    tickle Posts: 23,796, Reputation: 2674
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    #5

    Jan 20, 2011, 03:38 PM
    Quote Originally Posted by AtlantaTaxExpert View Post
    If so, it is news to me. I have been providing my email address almost since the day I started offering advice on this forum, and NONE of the forum managers have ever objected.
    Well good then, I don't promote any other service I provide through here.
    pierrept's Avatar
    pierrept Posts: 3, Reputation: 1
    New Member
     
    #6

    Feb 13, 2011, 11:31 AM
    Hi

    canadian government said that my mother is not suppose to paid any income tax on RRB pension

    She never live in US and this pension came from my father who was a canadian citizen working for
    americain union IBEW in Canada.

    A treaty beetween Canada and USA exist where that mention that a non=resident paid income in the country where they live but I don't know how to claim that income tax maybe form RRB-1001 but I,am not sure
    pierrept's Avatar
    pierrept Posts: 3, Reputation: 1
    New Member
     
    #7

    Feb 13, 2011, 11:32 AM
    Comment on AtlantaTaxExpert's post
    Hi

    canadian government said that my mother is not suppose to paid any income tax on RRB pension

    She never live in US and this pension came from my father who was a canadian citizen working for
    americain union IBEW in Canada.

    A treaty beetween Canada and USA exist where that mention that a non=resident paid income in the country where they live but I don't know how to claim that income tax maybe form RRB-1001 but I,am not sure

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