The tax treaties can get very complicated, but I think we’re on the right track with this straightforward treatment of an RRSP distribution to a U.S. resident. (I am definitely wondering if you can get some of your 25% withholding back from them, which would change the numbers being entered on the U.S. return. But I’m also required to avoid interpreting the Canadian tax code…)
It’s the Foreign Tax Credit which will (approximately) prevent dual-taxation, and obviously something isn’t yet configured how we want it. I recommend going back to the “Country Summary” screen and deleting the country, then re-entering it and stopping on any screens you’re not sure about, to post your concerns here. (It might be another agent who comes by to help you next, depending on everyone’s schedules. But I’ll be keeping an eye on this.)
Or you could take this opportunity to go back and tell the program you’re doing the deduction instead, just to see the result. (Are you otherwise itemizing? If so, it’s more likely that the deduction will be comparable to the credit.) You could then either stick with that approach, or make a note about it and resume getting the credit to work (and ultimately compare the two).
Also, umadevi19, I know I brought this up already, but this would be a great time to have us call you!
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
