Easy Step "Pension Income Credit" page, the "Porti...

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New Member

Easy Step "Pension Income Credit" page, the "Portion...foreign pension income exempt under a tax treaty" entered, was not automatically placed in Line 256. WHY NOT?

In Easy Step on the  "Pension Income Credit" page, the "Portion of eligible foreign pension income exempt under a tax treaty" that I entered, was not automatically placed in Line 256. WHY NOT?  Normally in Easy Step, amounts entered are placed in the corresponding box.  I only found that this amount was not entered on Line 256 by chance.  Where, then, in Easy-Step do I enter the "Portion of eligible foreign pension income exempt under a tax treaty" that gets placed in Line 256?

5 Replies
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New Member

Easy Step "Pension Income Credit" page, the "Portion...foreign pension income exempt under a tax treaty" entered, was not automatically placed in Line 256. WHY NOT?

If you are referring to social security income,  you need to enter it as social security on the foreign slip and then the deduction will be calculated automatically. If it is from another country:

From Easy step click on Forms and then the bottom left side there is "Forms" click and select T1 General Forms.

The scroll to line 256 and double click, this will take you to Additional Deductions and the line is called "Other income exempt under a tax treaty" and you can manually enter it there. 

Read more in this article: https://turbotax.intuit.ca/tips/what-is-exempt-foreign-income-6233


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Returning Member

Easy Step "Pension Income Credit" page, the "Portion...foreign pension income exempt under a tax treaty" entered, was not automatically placed in Line 256. WHY NOT?

There is no line to report "social security income"; there is a line called "US social security benefits". My pension is received from the Netherlands

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Moderator

Easy Step "Pension Income Credit" page, the "Portion...foreign pension income exempt under a tax treaty" entered, was not automatically placed in Line 256. WHY NOT?

Use the "find" engine on the top blue bar and type: "Foreign Income Summary".

If your pension from a country other than the USA, use the box "Other Foreign Pensions".

 

 

There are many other Boxes you can use to report other sources of foreign income if you wish. 

You can also report the Taxes paid on the same slip.

 

I hope this was helpful

 

 

 

Highlighted
Returning Member

Easy Step "Pension Income Credit" page, the "Portion...foreign pension income exempt under a tax treaty" entered, was not automatically placed in Line 256. WHY NOT?

Yes, this was very helpful. As my pension is paid to me in Canada by the Netherlands and there is a tax treaty between the two countries, do I report the amount of pension received as "foreign pension" and subsequently enter the same information on Line 56000?

If so, what is the point of declaring it at all?

Highlighted
Moderator

Easy Step "Pension Income Credit" page, the "Portion...foreign pension income exempt under a tax treaty" entered, was not automatically placed in Line 256. WHY NOT?

Good Question:

The reason we claim the world income is for CRA to determine the eligibility for federal and provincial benefits to be calculated based on your net income. 

Then based on some CRA rules, and tax-treaties, we can deduct this income so we don't get taxed on it. 

 

I hope this clarified the process