How to report a Canadian Pension NR-4 in ProConnect Tax

If input related to Canadian pensions is used, the return must be paper-filed. ProConnect Tax doesn't create an electronic copy of the Canadian NR-4. An electronic copy of a 1099-R is required for e-filing.

What is a Canadian NR-4?

Form NR-4 is issued by the Canada Revenue Agency (CRA) to report income paid to non-residents of Canada, such as:

• Pensions
• Annuities
• Investment or trust income

It shows gross income and Canadian non-resident tax withheld, similar to a U.S. 1099-R.

Canadian Pension is treated the same as if it were a US pension reported on a 1099R; social security the same as US Social Security. Taxable amounts are reported on Line 16, just like other pensions. 

• Make sure to convert the Canadian amounts on the 1099R to US dollars; and
• Don't forget to take the foreign tax credit on tax withheld (which also must be converted to US dollars).

Option 1: Report as Foreign Income

If you're treating the Canadian pension strictly as foreign income:

1. From the Input Return tab, go to Foreign/Other Income > Foreign income.
2. Set Country to Canada.
3. Enter Gross income and Foreign tax paid.
4. If claiming a credit, continue to Credits > Foreign Tax Credit.

Option 2: Report as a 1099-R Equivalent

If you're treating the NR-4 pension like a U.S. 1099-R:

1. Go to Input Return > Income > Pensions, IRAs (1099-R).
2. Select Add or Details.
3. Enter:
   • Payer name (e.g., Canadian Pension – NR-4)
   • Box 1: Gross distribution
   • Box 2a: Taxable amount (if applicable)
   • Box 7: Use a code like 7 – Normal distribution, if appropriate
4. Scroll to the bottom of the 1099-R input screen and locate the Foreign Employer Pension section:
   • Set Country code to CA = Canada
   • Optionally complete fields like Foreign employer’s tax ID, Account number, and Taxable amount override
5. Leave state fields blank, as this is foreign income.

Note: This step only records the income—it does not apply a tax credit.

Claiming the Foreign Tax Credit

To apply the Canadian tax withheld as a credit:

1. Go to Credits > Foreign Tax Credit (1116).
2. Enter the foreign tax paid amount from the NR-4.
3. Select Canada as the source country.
4. Classify the income type (usually General Category Income).

This ensures that the tax paid to Canada reduces the U.S. tax liability properly.