Tax on UK Pension is SO HIGH!!
Apr 29th 2017, 12:48 pm
#1
Forum Regular
Thread Starter
Joined: Dec 2004
Location: GTA
Posts: 134
Tax on UK Pension is SO HIGH!!
Hi Guys, I am hoping you can help me. I am doing taxes for my mum who also has come to join me here in Canada.
She is a widow and over 65 and she has been receiving her UK Pension since early 2014 which is tax free from the UK. I understand the tax-treaty between Canada-Uk where pension is non taxable at source but in Canada.
Given exchange rates her 2015 pension, when I calculate her tax, it comes to about $2700!!! can this be right??
It is being entered as foreign pension income in Turbo Tax but this seems too high.
please help! thanks
She is a widow and over 65 and she has been receiving her UK Pension since early 2014 which is tax free from the UK. I understand the tax-treaty between Canada-Uk where pension is non taxable at source but in Canada.
Given exchange rates her 2015 pension, when I calculate her tax, it comes to about $2700!!! can this be right??
It is being entered as foreign pension income in Turbo Tax but this seems too high.
please help! thanks
Apr 29th 2017, 2:41 pm
#2
limey party pooper
Joined: Jul 2012
Posts: 9,982
Re: Tax on UK Pension is SO HIGH!!
Hi Guys, I am hoping you can help me. I am doing taxes for my mum who also has come to join me here in Canada.
She is a widow and over 65 and she has been receiving her UK Pension since early 2014 which is tax free from the UK. I understand the tax-treaty between Canada-Uk where pension is non taxable at source but in Canada.
Given exchange rates her 2015 pension, when I calculate her tax, it comes to about $2700!!! can this be right??
It is being entered as foreign pension income in Turbo Tax but this seems too high.
please help! thanks
She is a widow and over 65 and she has been receiving her UK Pension since early 2014 which is tax free from the UK. I understand the tax-treaty between Canada-Uk where pension is non taxable at source but in Canada.
Given exchange rates her 2015 pension, when I calculate her tax, it comes to about $2700!!! can this be right??
It is being entered as foreign pension income in Turbo Tax but this seems too high.
please help! thanks
Apr 29th 2017, 3:26 pm
#3
Slightly Canadian
Joined: Jul 2005
Location: St. John's, Newfoundland
Posts: 10,129
Re: Tax on UK Pension is SO HIGH!!
Apr 29th 2017, 3:37 pm
#4
Joined: Sep 2008
Posts: 12,830
Re: Tax on UK Pension is SO HIGH!!
Depends on her marginal rate, if you have claimed personal exemptions, her personal circumstances, any other income.
It might be right, on the other hand it might not.
It might be right, on the other hand it might not.
Apr 29th 2017, 4:34 pm
#5
Forum Regular
Joined: Jan 2011
Posts: 181
Re: Tax on UK Pension is SO HIGH!!
Hi Guys, I am hoping you can help me. I am doing taxes for my mum who also has come to join me here in Canada.
She is a widow and over 65 and she has been receiving her UK Pension since early 2014 which is tax free from the UK. I understand the tax-treaty between Canada-Uk where pension is non taxable at source but in Canada.
Given exchange rates her 2015 pension, when I calculate her tax, it comes to about $2700!!! can this be right??
It is being entered as foreign pension income in Turbo Tax but this seems too high.
please help! thanks
She is a widow and over 65 and she has been receiving her UK Pension since early 2014 which is tax free from the UK. I understand the tax-treaty between Canada-Uk where pension is non taxable at source but in Canada.
Given exchange rates her 2015 pension, when I calculate her tax, it comes to about $2700!!! can this be right??
It is being entered as foreign pension income in Turbo Tax but this seems too high.
please help! thanks
As others have said, tax payable is calculated on all sources of income. However, using a free simple online tax calculator, and assuming that your mother's only income is a UK state pension-
State pension from UK at £125.00 pw for 52 weeks = £6500.00 @ 1.77 FX = $11505 and using Alberta rates-
the income tax on that sum is $5 federal, and $0 provincial.
Apr 29th 2017, 8:02 pm
#6
Joined: Sep 2008
Posts: 12,830
Re: Tax on UK Pension is SO HIGH!!
As others have said, tax payable is calculated on all sources of income. However, using a free simple online tax calculator, and assuming that your mother's only income is a UK state pension-
State pension from UK at £125.00 pw for 52 weeks = £6500.00 @ 1.77 FX = $11505 and using Alberta rates-
the income tax on that sum is $5 federal, and $0 provincial.
State pension from UK at £125.00 pw for 52 weeks = £6500.00 @ 1.77 FX = $11505 and using Alberta rates-
the income tax on that sum is $5 federal, and $0 provincial.
May 1st 2017, 2:13 pm
#7
Forum Regular
Joined: Feb 2008
Location: Toronto, Canada
Posts: 285
Re: Tax on UK Pension is SO HIGH!!
Welcome to Canada.
