Where in TurboTax Premier do I enter foreign tax credit for taxes paid on a Canadian source lump-sum distribution from the pension plan RRIF?

Forum|Forum|1 year ago
April 2, 2025
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TurboTax gives only options for 1099-INT, 1099-DIV, 1099-OID. No options to relate thr Canadian Registered account distribution income with the tax paid.

TurboTax Online

ThomasM125

You need to go to the Estimates and Other Taxes paid section in the Deductions and Credits area of TurboTax, then choose Foreign Taxes to assign your foreign income to a country and enter the tax paid. Indicate that you have already entered your 1099 forms with foreign taxes paid. Choose the foreign tax credit option in place of the deduction. Choose the passive income option. Assign a country for your income and report the foreign income amount.

On the screen that says Foreign Taxes Paid - (name of country), choose the No, I have foreign taxes paid on rental, or other income (including wages) option when asked if your taxes paid only include taxes reported on Form 1099-INT or 1099-DIV, then enter the foreign taxes paid:

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nitoroAuthor

Thank you very much for the prompt answer - very helpful.

A question: why should I select "Passive income" option instead of "Income re-sourced by treaty", as Canada and US have treaty regarding the retirement accounts? Thanks again.

DianeW777

By selecting 'Passive income' it relieves you of detailed entries simply by selecting 'Income re-sourced by treaty. It can be done but it's not necessary and can be time consuming for you. The results will be the same.