Military Pension - Canadian Tax Returns
Feb 23rd 2021, 11:07 pm
#1
Just Joined
Thread Starter
Joined: Jun 2006
Location: East End, St John's, NL
Posts: 26
Military Pension - Canadian Tax Returns
Hey all,
I don't pay any tax in the UK, including my military pension, and I am aware that I must declare my pension, which I do! But I always seem to pay through the nose each year! Does anybody have a tax advisor/accountant that knows the ins and outs of our military pension that they can recommend? I don't care what province they are in, as everything is done remotely nowadays anyway!
Thanks
Glenn
I don't pay any tax in the UK, including my military pension, and I am aware that I must declare my pension, which I do! But I always seem to pay through the nose each year! Does anybody have a tax advisor/accountant that knows the ins and outs of our military pension that they can recommend? I don't care what province they are in, as everything is done remotely nowadays anyway!
Thanks
Glenn
Feb 25th 2021, 1:15 am
#2
limey party pooper
Joined: Jul 2012
Posts: 9,982
Re: Military Pension - Canadian Tax Returns
Hey all,
I don't pay any tax in the UK, including my military pension, and I am aware that I must declare my pension, which I do! But I always seem to pay through the nose each year! Does anybody have a tax advisor/accountant that knows the ins and outs of our military pension that they can recommend? I don't care what province they are in, as everything is done remotely nowadays anyway!
Thankszz
Glenn
I don't pay any tax in the UK, including my military pension, and I am aware that I must declare my pension, which I do! But I always seem to pay through the nose each year! Does anybody have a tax advisor/accountant that knows the ins and outs of our military pension that they can recommend? I don't care what province they are in, as everything is done remotely nowadays anyway!
Thankszz
Glenn
Feb 25th 2021, 9:41 am
#3
Just Joined
Thread Starter
Joined: Jun 2006
Location: East End, St John's, NL
Posts: 26
Re: Military Pension - Canadian Tax Returns
This is my problem! The various tax software out there does tell you, but it doesn't indicate if there is any tax relief due to any agreements or anything. I think I'm going to bite the bullet an pay an accountant this year and see what the best plan of action is.
Feb 25th 2021, 11:51 am
#4
Oscar nominated
Joined: Jan 2008
Location: Moncton, NB, CANADA
Posts: 50,820
Re: Military Pension - Canadian Tax Returns
Every tax return I've ever made using a variety of different on-line software (simpletax, turbotax, studiotax etc) has given the opportunity to indicate whether tax has been paid on an income in another country.
If you're not paying UK tax then I'd say there's no agreement involved and you'd be taxed as normal.
Just a thought but if you've not seen anything about double tax agreements, maybe try a different version or might it be that you've perfectly correctly recorded the amount you receive and the source, but not in the foreign income part?
I remember one year I did a return, either the software didn't have a foreign section - or I missed it - and the most appropriate place I could see to record my UK ex-employment pension was in other employment income (non T4). Recording the correct amount in the "wrong" place didn't affect anything.
Feb 25th 2021, 2:43 pm
#5
Banned
Joined: Apr 2009
Location: SW Ontario
Posts: 19,879
Re: Military Pension - Canadian Tax Returns
Line 11500 Pensions from a foreign country
If there is a tax treaty with the country your pension is from, you can claim a deduction on line 25600 for the part of your foreign pension income that is tax-free in Canada.
Amounts that are not taxed: https://www.canada.ca/en/revenue-age...hat-taxed.html
amounts paid by Canada or an allied country (if the amount is not taxable in that country) for disability or death of a war veteran due to war service
amounts paid by Canada or an allied country (if the amount is not taxable in that country) for disability or death of a war veteran due to war service
https://laws-lois.justice.gc.ca/eng/....html#h-290592
Amounts not included in income
Service pension, allowance or compensation
(d) a pension payment, an allowance or compensation that is received under or is subject to the Pension Act,the Civilian War-related Benefits Act or the War Veterans Allowance Act, an amount received under the Gallantry Awards Order or compensation received under the regulations made under section 9 of the Aeronautics Act;
and
War pensions
(e) a pension payment received on account of disability or death arising out of a war from a country that was an ally of Canada at the time of the war, if that country grants substantially similar relief for the year to a person receiving a pension referred to in paragraph 81(1)(d);
Service pension, allowance or compensation
(d) a pension payment, an allowance or compensation that is received under or is subject to the Pension Act,the Civilian War-related Benefits Act or the War Veterans Allowance Act, an amount received under the Gallantry Awards Order or compensation received under the regulations made under section 9 of the Aeronautics Act;
and
War pensions
(e) a pension payment received on account of disability or death arising out of a war from a country that was an ally of Canada at the time of the war, if that country grants substantially similar relief for the year to a person receiving a pension referred to in paragraph 81(1)(d);
Last edited by Siouxie; Feb 25th 2021 at 3:24 pm. Reason: combined posts
Feb 25th 2021, 4:07 pm
#6
Oscar nominated
Joined: Jan 2008
Location: Moncton, NB, CANADA
Posts: 50,820
Re: Military Pension - Canadian Tax Returns
I believe the distinction is war/disability related rather than a standard military pension.
A military pension being on a par with a pension from a former employer - in this case the former employer being the military/armed forces - and is assessable for income tax and benefits in the usual way
A War Pension or Disability pension coming as compensation with different rules for benefits and taxation.
A military pension being on a par with a pension from a former employer - in this case the former employer being the military/armed forces - and is assessable for income tax and benefits in the usual way
A War Pension or Disability pension coming as compensation with different rules for benefits and taxation.
Feb 25th 2021, 9:33 pm
#7
Banned
Joined: Apr 2009
Location: SW Ontario
Posts: 19,879
Re: Military Pension - Canadian Tax Returns
From the 1st link given in my post above:
Attach a note to your paper return identifying the type of pension you received and the country it came from. In some cases, amounts you receive may not be considered pension income and you may have to report it at a different place on your return.
Feb 25th 2021, 11:22 pm
#8
limey party pooper
Joined: Jul 2012
Posts: 9,982
Re: Military Pension - Canadian Tax Returns
It's as clear as MUD... get some advice.. (it appears to be interpretive)..
It's as clear as mud = see below .. I'd definitely check with an accountant..
Line 11500 Pensions from a foreign country
From the Income Tax Act Subdivision G: Paragraph 81.1.
https://laws-lois.justice.gc.ca/eng/....html#h-290592
It's as clear as mud = see below .. I'd definitely check with an accountant..
Line 11500 Pensions from a foreign country
From the Income Tax Act Subdivision G: Paragraph 81.1.
https://laws-lois.justice.gc.ca/eng/....html#h-290592
Husband gets the disability pension separately
Last edited by bats; Feb 25th 2021 at 11:37 pm.
