1040 Reporting - For Funds rec'd from Canadian Pension Plan

I am a resident of the U.S, originally from Canada....My previous Canadian employer recently terminated their Pension plan and in 2009 distributed to me the surplus, net of 25% NR tax withheld...The balance - that is, the amount of the pension benefit payable that was not considered a surplus - was used to purchase a deferred pension annuity which will not start paying out unitl I retire.

How / Where would i report the surplus distribution on the 1040?

Since, I did not receive an NR4 re the deferred pension annuity, I presume that I do not have to report the deferred pension annuity...Is this correct?

The entire origianal amount is taxable. You report it all and pay US tax, using the 25% as a credit.

The annuity deposit then becomes your tax-free investment in your annuity. It is then treated like an annuity, not a pension.

Only a portion will be taxable in canada and US at withdrawal.

Any left-over Cdn tax from this year can be used in future years in US.

Thank you Agnelson for your answer - Can you please provide some specific guidance on where this would be reported on the 1040 or related forms/schedules?

Am I correct in interpreting that the annuity payouts would then be taxed in the year of payment...When you say that any left-over Cdn tax from this year can be used in future years in US, are you talking about the excess of 25% over what the tax rate in the U.S. would be?...what would be the mechanism to account for this?

forums.serbinski.com is where I answer these Q's outside the tax season.