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Ukrop
Returning Member

Foreign pension - how to designate TAX TREATY?

I'm filing my mom's return. She has pension from foreign country that has tax treaty with Canada.

 

Turbotax keeps suggesting to designate this income as tax-free. But I simply can't find HOW... It drives me crazy!!!

1 Reply

Foreign pension - how to designate TAX TREATY?

The reason behind a tax treaty is to prevent double taxation. TurboTax calculation is based on entries such as source country, taxes paid if applicable. TurboTax will calculate applicable taxes if required based on the tax treaty terms between the source country and Canada.