The taxable amount of your distribution should not be reduced by the tax payment to Canada. The full taxable amount is required to be included in your US income. Once you have completed that, then you do take the foreign tax credit using the instructions provided by @MarilynG1. They are provided here again for your convenience
Foreign Tax Credit for the amount of Canadian Tax you paid. Here's the steps:
- Search (upper right), type in "foreign tax credit" and Enter
- Select Jump to foreign tax credit
- Follow prompts
- On screen, "Tell Us About Your Foreign Taxes", do not check the first box.
- (First box says -you have no more foreign taxes to enter other than the 1099-DIV, 1099-INT, 1099-OID or a Schedule K-1)".
- Follow prompts
- Choose the Income Type, select "Passive Income"
- On screen, "Country Summary", add Canada
- On screen, "Other Gross Income", enter Canada RRSP and the Gross Distribution amount
- On screen, "Foreign Taxes Paid", under foreign taxes on Other Income, enter the amount of Canadian tax you paid
@bntax_2023
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