reporting rrsp distribution

7 replies
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there are two boxes to report RRSP distribution:

Total Distribution and Taxable Part of Distribution.

Do I enter the same amount in both boxes?

Where do I enter tax withheld in Canada?

RobertB4444

Alumni - Intuit

Unless the amount that you received includes money that you contributed to the RRSP then all of the distribution is taxable.

Your Canadian tax with held that was paid to the US would go under estimated payments. Canadian tax with held that was paid to Canada is not deductible - only the actual taxes you paid to Canada are deductible as foreign taxes paid.

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emigaczAuthor

Level 2

do I report the net amount? that is gross distribution minus the canadian tax withhold?

DMarkM1

Alumni - Intuit

You will report the gross distribution to the US since you are filing US resident. You would need to contact/file Canada to get a any refund of taxes mistakenly withheld there.

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vwli

Level 2

Total Distribution is the actual total amount of the RRSP distribution.
Taxable Part of Distribution is the taxable amount of the RRSP distribution using Pro-Rata rule depending on your cost base calculation:

For Canadian citizens who are U.S. residents (but not U.S. Citizens), the amount of contribution including interest, dividends and any realized capital gains up to the day a person becomes a U.S. tax resident is considered principal (cost basis) for U.S. tax reporting purposes. The cost basis does not include any unrealized capital gain.
For a U.S. citizen who is also a tax resident of Canada, your principal contribution to the RRSP will be your cost basis. Further, if the contributions were deducted on your U.S. Form 1040 income tax return, then your deduction does not increase cost basis.
Cost Basis Defined: Cost Basis is what the U.S. considers the original cost of property or an asset, adjusted for depreciation.
Reference: https://akifcpa.com/how-to-treat-resp-and-rrsp-canada-distributions-on-u-s-income-tax-returns/

esarnc

Level 3

How about a US Citizen who was once a Canadian tax resident but no longer files taxes in Canada but receiving the RRSP distribution with CRA withholding 25%?