It depends on what the exchange rate was in 2023. I have researched historical rates for 2023 and the average is around .72. Let's calculate.
- Income $135,000 X .72 = $97200
- Standard Deduction 27,700
- Taxable Income $69,500
- Tax liability $7,903 This is approximate but could vary depending on the exchange rate
Now since you paid the withholding to Canada, you will need to claim a foreign tax credit for the taxes you paid to Canada.
To report the income, go to:
- Log into your account
- Select Wages and income
- Less Common income
- Miscellaneous Income, 1099-A, 1099>start
- Scroll to the bottom of the page to Other Reportable Income
- Other taxable income, answer yes
- Then give a brief description of the income and the amount listed. Here list this as RRIF income and the amount.
As far as the Foreign Tax Credit, i don't have enough space in this post to go through the complete steps but I will get you started. You can reply back if you need additional help in completing this section.
- Go to Federal
- Deductions and credits
- Estimate and other taxes paid
- Foreign Tax Credit>start or revisit
- When it asks We just need to check if you have any uncommon situations indicate I paid foreign taxes on income I earned while working in another country.
- At some point in the interview, it will ask if you wish to take a deduction or a credit. You will wish to take the credit as this should erase your entire tax liability unless there is other income items to report in your return.
- Foreign Taxes paid should be $33,750 X .72= $24,300. This is approximate but could vary according to the exchange rate you use.
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