How do I report a Canadian NR4 with income codes 26 and 27 for 2018 and where does the NR Tax Withheld show up on the worksheet?

[pgraham6299]

A few prior answers related to 2015 software and don’t seem to apply to 2018. Eg: I can’t find a search bar at the top of the display.

[KarenJ]

You need to report your RRIF income as follows in Federal section of TurboTax:

1. Click on Wages & Income at the top of the page
2. Scroll down to Retirement Plans and Social Security
3. Scroll down to Canadian Registered Pension Income
4. Click Start and enter your income

To report your Canadian tax paid on your retirement for foreign tax credit:

1. Click on Deductions & Credits
2. Scroll down to Estimates and Other Taxes Paid
3. Scroll down to Foreign Taxes
   
4. Click 'Yes" you paid foreign taxes
5. Click through the screens regarding foreign interest and dividends
6. Click yes that you have reported all your foreign income already in TurboTax
7. Click that you want to take a credit
8. Answer question about the Simplified Limitation Election
9. Choose income type for pension - it will be Passive income
10. Add Canada as the country
11. Enter description -Canadian RRIF
    
12. Enter Income amount that you previously reported in TurboTax
13. Enter your taxes you paid on your foreign retirement in the box "Other income"
14. Continue through ALL the foreign tax credit screens until done.

[pgraham6299]

This works up to step 10 then this answer differs from the screens in TurboTax

[RandyWhiteDJ]

Thank you for your post Karen, however in following your instructions, the foreign tax credit uses a calculation on form 1116 which only allowed approximately 35% of the actual total tax I paid in 2019, with the balance treated for carry-back or carry-forward purposes, which is of no use to me.  I was expecting that for RRIF pension income I would have a credit in the same year for 100% of the non-resident tax withheld on the NR4 form.  I am not sure if RRIF pension income should be considered as passive income?  Any further thoughts on this would be appreciated, as this issue is costing me an additional unexpected tax liability of $1,300.    

[KarenJ2]

The IRS limits the amount of foreign tax you may claim as a credit.  That limit is the total amount of U.S. tax you owe, multiplied by a fraction: your foreign taxable income (for each category) divided by total taxable income. Thus, if you earn $50,000 from foreign sources in one category, and $100,000 from all sources, your foreign tax credit limit is your U.S. tax multiplied by 1/2. 

The RRIF income may be passive income.

Taxation of Your RRSP, RRIF

[DilhanT]

Can someone please give instruction how to report Tax withheld in Canada shown in NR4 in the 2020 Turbo Deluxe software . Thank you

[Cynthiad66]

You can use TurboTax Deluxe to report your foreign income and foreign tax paid.    For information about the foreign tax credit as well as links to other useful information related to foreign income go to:  Claim the Foreign Tax Credit 

You need to report your RRIF income as follows in Federal section of TurboTax:

1. Click on Wages & Income at the top of the page
2. Scroll down to Retirement Plans and Social Security
3. Scroll down to Canadian Registered Pension Income
4. Click Start and enter your income

To report your Canadian tax paid on your retirement for foreign tax credit:

1. Click on Deductions & Credits
2. Scroll down to Estimates and Other Taxes Paid
3. Scroll down to Foreign Taxes
4. Click 'Yes" you paid foreign taxes
5. Click through the screens regarding foreign interest and dividends
6. Click yes that you have reported all your foreign income already in TurboTax
7. Click that you want to take a credit
8. Answer question about the Simplified Limitation Election
9. Choose income type for pension - it will be Passive income
10. Add Canada as the country
11. Enter description -Canadian RRIF
12. Enter Income amount that you previously reported in TurboTax
13. Enter your taxes you paid on your foreign retirement in the box "Other income"
14. Continue through ALL the foreign tax credit screens until done.

Per @KarenJ