The tax treatment of U.S. annuity income for Canadian residents will depend on several factors, including the specific provisions of the Canada-U.S. tax treaty and the type of annuity income received.

Under the Canada-U.S. tax treaty, certain types of income may be exempt from tax in one country if they are taxed in the other country. However, whether or not U.S. annuity income is exempt from Canadian taxes will depend on the specific provisions of the treaty, as well as the individual circumstances of the taxpayer.

For more information, please see our TurboTax webpage. 

The USA/Canada Tax Treaty Explained

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