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New Member
posted Apr 13, 2021 11:56:56 AM

Why my foreing pension is reported as Net employment earning and then then the application gives me the Canadian Employment Non- refundable tax credit.

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Level 6
Jan 25, 2022 7:59:30 AM

We appreciate you choosing TurboTax,

 

As per CRA,  if there is a tax treaty with the country your pension is from, you can claim a deduction on line 25600 of your return for the part of your foreign pension income that is tax-free in Canada.

If you paid foreign taxes on your pension, you may be able to claim a foreign tax credit when you calculate your federal and provincial or territorial taxes (see line 40500). Do not subtract the taxes from your income when you report it.

 

Your net income is calculated by subtracting all allowable deductions from your total income for the year. It's used to determine your federal and provincial or territorial non-refundable credits, or any social benefits you receive like the GST/HST credit or the Canada child benefit.

 

Please visit the link provided for further clarifications:

CRA: Line 11500 – Other pensions and superannuation:
Pensions from a foreign country

 

Please contact our phone support team or contact us directly on Facebook or Twitter if you require further assistance.