Following this question, suppose I have $2000 RRSP distribution with 25% withheld tax that is $500 on my NR4 (all are in USD). When I claim foreign tax credit, the tax credit is only about $300. That seems not reasonable. Together I will pay US tax about $400 plus Canadian tax $500 minus $300 credit, end up $600 tax for that $2000 distribution. That tax rate is higher than either US or Canada tax rate. Maybe I am wrong?
