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New Member
posted Oct 31, 2019 2:52:08 AM

USD Pension from United Nations. In Foreign Slip, when I insert Exempt Portion, the number is added instead of deducted.

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3 Replies
Level 13
Oct 31, 2019 2:52:09 AM

Go to Foreign income slip, located under the Income Tab > Tslips > Foreign Income then all translates to getting the Foreign Tax Credit which is on line 405 of your tax return.

If needed refer to the links provided below for more information:

Line 256 - Other exempt income including prescribed international organization (such as the United Nations).

FTC - The U.S. withholding tax rate charged to foreign investors on U.S. dividends is 30%, but this amount is reduced to 15% for taxable Canadian investors by a tax treaty between the U.S. and Canada.

Level 3
Apr 28, 2021 12:49:50 PM

Dear TurboTaxLise

 

UN Pension has absolutely nothing to do with Foreign Income Tax Credits or US withholdings.

Level 3
Apr 28, 2021 12:55:31 PM

Dear Giving-Headaches

 

Do not enter anything related to UN pension using Foreign Tax Slips. That is to be used for countries with which Canada has a tax treaty. Canada does not have a treaty with the UN. Canada is one of the countries who signed the UN Convention in 1947 and passed a separate paragraph in the Income Tax Act exempting UN income without any tax treaty. I recommend joining the Canadian Association of Former International Civil Servants (CAFICS) as they have fought numerous appeals and received rulings on behalf of members with CRA and annually publish a Tax Guide for Canadian UN pensioners. https://www.cafics.org/