Form 8833 vs Canadian RRSP with no contributions and no distribiutions

[serge_lamarre]

Hi,

We are US residents since 2006 and citizens since 2016. We have RRSPs in Canada, and since 2005, we never contributed and we never received any contributions. We are about 10 years away to receive contributions when we will retire. Yes, Form 8938 and FBAR requirement will be done/completed but I am wondering if I have to also fill the form 8833. Looks like this form is required only if you make contributions or get distributions from a RRSP or some sort of pension plan from Canada but I could be wrong.

Can someone provide insights on this, and if indeed we need to fill out the form 8833, how should we fill it? What fields are required and what should we write in it?

Thank you.

[serge_lamarre]

Hi,

Any tax expert has an answer for this?

Thank you.

[MarilynG1]

Yes, you would need Form 8833 if you want to exclude foreign income due to treaty agreements.

Since you're not yet receiving any foreign pension income, you won't need this form for 2024.

When you start receiving your Canadian Pension Income, you can report it under Income > Retirement Plans and Social Security > Canadian Registered Pension Income. You can get a credit for tax paid to Canada on this income in the Foreign Tax Credit section under Deductions & Credits. 

@serge_lamarre 

[Bisso Steve]

With what information should the F8833 completed with if I received a lump sum amount for a Canadian pension plan? can someone else with details so I don't make any mistakes.

[Bisso Steve]

can someone help?

[DaveF1006]

No. ‌You wouldn't file a 8833 to exclude your RRSP. This is taxable in both Canada and the US under the US/Canada tax treaty. To report.

1. Go to income
2. Retirement Plans and Social Security
3. Canadian Registered pension

To claim a Foreign Tax Credit if you paid taxes to Canada.

1. Go to Federal
2. Deductions and credits 
3. Estimate and other taxes paid 
4. Foreign Tax Credit>start or revisit
5.  As you go through the screens, when it asks "Tell Us About Your Foreign Taxes" select none of these apply.
6. When it asks if you wish to take the deduction and credit, take the credit.
7. Continue through until you reach a screen that says "No other income or expenses" Say no
8. Continue through until it asks the income type, say Passive Income
9. Next add a country. Pick Canada
10. Other Gross Income say  RRSP Canadian income and the Gross Amount of the income
11. Continue through the interview until it asks for the foreign taxes you paid, here record the amount. Report this as other income.
12. Now you are done reporting the foreign taxes. Just keep going through the section without making any more entries. You will have finished reporting your gross income from the sale and the foreign taxes paid.

[Bisso Steve]

Thank you