Solved: If I took funds out of a Canadian RRSP and paid a 25% non-resident withholding tax at the time of withdrawal, do I have to report the funds as income on my US taxes?

1 Best answer

Level 3

Jun 1, 2019 10:39:32 AM

The closest I could find was this letter from the Franchise Tax Board and it may even be outdated, but it seems in this letter to be taxable:

https://www.ftb.ca.gov/law/infoletter/20030321.pdf

Level 3

Jun 1, 2019 10:39:32 AM

The closest I could find was this letter from the Franchise Tax Board and it may even be outdated, but it seems in this letter to be taxable:

https://www.ftb.ca.gov/law/infoletter/20030321.pdf

Level 3

Jun 1, 2019 10:39:36 AM

Yes. Look farther down on the page after you click See Entire Answer. Report it as TurboTaxLina says:

https://ttlc.intuit.com/replies/6009545

[Edited 4/8/2019|4:41 PM]

New Member

Jun 1, 2019 10:39:37 AM

Hi CheryIW: I did as you mentioned for my RRSP distribution. I find that in my State (CA) return, the RRSP distribution amount is subtracted from the total adjusted income and there is no tax impact in state (CA) tax return. Is it true? Do I have do some adjustment for state tax?

Level 1

Jun 1, 2019 10:39:37 AM

I'm not 100% sure, but I believe that, if you've been handling the RRSP correctly all along, you've been paying state tax on earnings in the RRSP. CA is one of the only states that makes you pay as you earn. Therefore, it makes sense that you don't have to pay state taxes on the distribution since you've been paying all along (or at least I hope you have been).

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If I took funds out of a Canadian RRSP and paid a 25% non-resident withholding tax at the time of withdrawal, do I have to report the funds as income on my US taxes?