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Get your taxes done using TurboTax
First of all, let's go through one step at a time and hopefully, when done, this will clarify to you how to record this information.
To record all distributions from RRIF, you will report these here.
- Log into your account
- Select Wages and income
- Less Common income
- Miscellaneous Income, 1099-A, 1099>start
- Scroll to the bottom of the page to Other Reportable Income
- Other taxable income, answer yes
- Then give a brief description of the income and the amount listed..
- Once this appears in a summary screen, click on the Add Miscellaneous Income Item and then call it RRIF Distributions and the amount of both distributions
Once this is entered as income, you need to claim a foreign tax credit for the amount of foreign tax paid in Canada.
- Go to Federal
- Deductions and credits
- Estimate and other taxes paid
- Foreign Tax Credit>start or revisit
- Navigate and record the entries that the program asks for and when you reach the page that mentions Foreign Tax Credit Worksheet, this is where you take notice.
- The first that you will be asked is what category of income is it, you will say Passive income.
- Next screen will say Country Summary, select add a country Here you will say Canada.
- When it says Other Gross Income - XXXX, Here you put in the Gross Amount you earned in that country. This is the total Gross amounts of the RRIF pensions you received and reported in Step 8 above.
- Then you will navigate through the screens until you come to a screen that says Foreign Taxes Paid - XXXX, here is where you record the total amount paid under Foreign Taxes.
- Finish out the section.
Note: You do not need to make separate entries for each RRIF. The IRS does not require this at this time so you may make consolidated entries in declaring income and the foreign tax credit in the manner i just described.
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‎April 11, 2024
10:21 AM