topic Are the foreign taxes withheld by Canada on a registered retirement plan payment income for US taxes in Retirement tax questions

Are the foreign taxes withheld by Canada on a registered retirement plan payment income for US taxes

roscr — Mon, 23 Feb 2026 13:01:12 GMT

Re: Are the foreign taxes withheld by Canada on a registered retirement plan payment income for U...

DaveF1006 — Wed, 08 Feb 2023 20:35:11 GMT

No. Whatever foreign taxes withheld on a Canadian Pension is paid to the Country of Canada. You will stay need to pay US taxes on the same retirement pension.

You may be able to claim a foreign tax credit for the taxes paid in Canada. Here is how you will request to claim a foreign tax credit in Turbo Tax for the taxes paid to Canada.

Click on Federal Taxes > Deductions & Credits [
Scroll down to the Estimates and Other Taxes Paid section.
Click START on the box next to Foreign Taxes.
Continue
Did you pay taxes on income outside the U.S.? Click Yes, I did..
Continue
Continue
Foreign Taxes, click Continue
Deduction or Credit? Most people choose the credit since so few itemize deductions. You can try it both ways and determine what is best for you. Select an option.
Continue to enter the information requested on the screens.

Re: Are the foreign taxes withheld by Canada on a registered retirement plan payment income for U...

roscr — Thu, 09 Feb 2023 19:39:46 GMT

thank you, to confirm my understanding. $20,000 is withdrawn from the registered cdn retirement plan, the cdn gov. withholds $3000 and I receive $17000. For my US tax filing I put in $20,000, is that correct?

Re: Are the foreign taxes withheld by Canada on a registered retirement plan payment income for U...

JohnB5677 — Thu, 09 Feb 2023 19:51:22 GMT

Yes, that is correct. You would post the full $20,000. It would be converted to US Dollars.

You may also apply for the Foreign Tax Credit.

Go to Deductions & Credits
Estimates and other taxes paid.
Select Foreign Tax Credit.

This is a lengthy interview, but it does work.