Almost perfect. You were given two methods of reporting and combined them so instead we need to pick one best method.
1. Report the income:
- $100,000 is reported as income on line 5a.
- Line 5b is taxable income to Canada converted to USD. If the entire $100,000 is on your Canada return, it must be the equivalent on your US return. See page 27, line 5 distributions in Instructions for Form 1040 to see if the entire 100,000 is taxable in the US. I expect it to be the equivalent of the taxable amount to Canada.
2. Report the foreign tax paid for credit against the taxes due. Your steps look good.
Since you paid $25,000 tax for a $100,000 distribution, I would suspect the $100,000 is the taxable amount otherwise you would have said, I withdrew $100,000 and had $25,000 tax withheld for the $75,000 Canada taxable portion.
Reference:
@jptbt8
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