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Retirement tax questions
Thanks a lot for all the answers by experts!
However I am still very confused as there seem a number of answers to me, and hard to follow which one.
I withdrew all my RRSP money in 2023, e.g. total balance is $100K, Canada took $25K as tax, i.e. I got $75K.
Is below the complete procedure at TurboTax to deal with the tax on US?
1). Under "Wages & Income", enter $100K as "Total Distribution", and $75K as "Taxable part of Distribution"
2). Under "Deduction & Credits", follow below steps to claim the $25K as foreign tax credit:
"
- 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 the screen prompts
- Choose the Income Type, select 'Passive Income'
- Select Canada on the 'Country Summary screen
- For the 'Other Gross Income, enter Canada RRSP and the Gross Distribution amount
- For the 'Foreign Taxes Paid, under foreign taxes on Other Income, enter the amount of Canadian tax you paid"
i.s. I need to do both 1) and 2) ?
Thanks!
‎February 22, 2024
11:17 AM