BillM223
Expert Alumni

Retirement tax questions

To follow up on Ralph's response, as he said, money withheld on NR-4 goes to Canada. 

 

This requires filing in Canada to get a refund or claiming a tax credit on the US return for any amount that isn't refundable. 

 

Options:

 

1. I don't know if you are filing a return in Canada, for yourself or for your late mother's estate. If so, apply these NR-4 forms and see if an adequate amount is refunded to you.

 

2. If not filing in Canada, file in Canada using the NR-7, Application for Refund Part XIII Tax Withheld. Note the instruction on page 2: "Non-Residents of Canada Applicant • The only person/entity entitled to the refund is typically the beneficial owner. A refund will only be issued in another name, if a qualifying situation arises (e.g., partnership, multiple beneficial owners, Canadian Securities Dealers etc.). One (1) NR7-R application per year, per income type, per beneficial owner, per Canadian payer or agent's non-resident tax account number is required."

 

3. Otherwise, on your US return, for any tax paid in Canada (less amounts refunded to you in options 1 and 2), you can claim the Foreign Tax Credit. This is because as a U.S. citizen, you have to report this income on your return in any case, and the Foreign Tax Credit can be used to "pay off" the tax due.

 

I realize that that doesn't answer your question about "Do I get any money back", but we do not have enough information about your situation to be able to say.

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