Reporting Canadian RRSP Withdrawl on US Taxes

Forum|Forum|4 years ago
February 3, 2022
2 replies
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I am a US citizen and last year I had a withdraw from my Canadian RRSP. When I go to enter it under Wages and income I am not sure what the difference is between Total Distribution and Taxable Part of Distribution. For an example if my total withdraw was $10000 and the Canadian government withheld $2500 (25%). What would I enter in turbotax for each of the distribution entries?

Also should I also be filling for a foreign tax credit on my taxes this year?

Any help will be greatly appreciated in understanding this tax entry.

Best answer by mglauner

Enter your Total Distribution as $10,000 and the Taxable Distribution as $7,500.

You are not required to claim the Foreign Tax Credit, but you may want to if it is beneficial to do so.

Click this link for detailed instructions on Entering your Canadian RRSP and Claiming the Foreign Tax Credit.

mglaunerAnswer

Enter your Total Distribution as $10,000 and the Taxable Distribution as $7,500.

You are not required to claim the Foreign Tax Credit, but you may want to if it is beneficial to do so.

Click this link for detailed instructions on Entering your Canadian RRSP and Claiming the Foreign Tax Credit.

bcselinAuthor

MarilynG1

Thank you for the response and answering my question.

RPG 1972

Hi. Appreciate the advice of engineering a 1099-R. The tax withheld at 30% offset the additional income. My only concern was that it said I may have an early withdrawal penalty of 15%. I know US plans have early withdrawal penalty. Any idea why this warning was triggered ? The penalty was not imposed on my federal return.

DaveF1006

This warning was for informational purposes only alerting you to the fact that you may have an early withdrawal penalty. If the penalty was not imposed, then you can ignore this warning.

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