From what I am reading the US does not double tax Canadian income. 

If I read that correctly, does that mean the Retirement and Pension income does not get reported on the 1040? 

I reported on Form 1116 and reported the tax withheld as tax paid but then the software says the Gross Income is too low (because I did not add the Canadian income to the 1040). 

Before adding Canada income to 1040 (Other Income) : Fed Refund $2k

After adding Canada income to 1040 : Fed Refund 1.4k 

Thanks for any replies on this in advance. I really want to do this correctly and learn for the future.