Discussions

I worked in the US for several years and have a pension with an American company. I can take a partial lump sum when I am 55 and start an annuity for the rest. Does anyone know how the taxation will work, both in here and the US? Would an accountant know or do I need to contact CRA/IRS?

If you go to one of the bigger accounting firms they will have someone that would be able to help you

perhaps you can check with your MP. When I worked for an MP several years ago we'd take a person's information, have them sign a release form & then we could enquire with CRA about things like that. Just realize though that some MPs are cheap buggers who don't want to hire MP Assistants & therefore don't have a support team in place to handle questions like that. Worth a try though to save some $$$.

Get an accountant. Do not use ebrandon. Border tax issues are complex and situation dependant.

In my personal experience, the people at the banks know didly squat about this, as I said before go to one of the big name accounting firms and talk to them. We have gone through a similar situation.

I agree to consult an accountant that has experience in international tax. Taxation between Canada and the US is governed by a tax treaty. Often US income or pensions paid to a Canadian resident will be taxable in both countries, but by virtue of the treaty there should be some tax relief in there so you're not paying the same tax twice (for exmaple, if the US tax bill is $5, but the Canadian one is $10, there's likely a credit of $5 towards your Canadian bill as an offset).  
 
But the only way to know for sure will be to talk to an accountant, and maybe have a run through with the CRA's International Tax Services Office.

A dual citizen, or just Canadian?  
 
I do not collect a US pension but do have US income. They keep a withholding tax then when I do my canadian taxes I claim the US income. There is a formula i have to use to determine the amount of the withheld monies i can claim as "taxes deducted". Your pension may be the same, or it may be different-as said, a good accountant can help you.  
 
If you are a dual citizen then i am pretty sure you will have to file returns in both countries-thoughasi j understand it dual citizens have to do that anyway, even for just Canadian income. I have a friend who used a US accountant to get his US returns up to date after the US tax laws changed a few years ago.