RRSP withdrawal reporting in TT

Forum|Forum|2 years ago
January 24, 2024
5 replies
48 views

I took out a lump sum from my RRSP in 2023 and Canada automatically withheld 25% in taxes. Let's say I withdrew $20,000 and Canada Revenue took $5000.
In TurboTax, under Canadian Retirement Income:
What amount do I put for Total Distribution, and what do I enter for Taxable Part of Distribution?

And do I enter these amounts in US dollars, and if so, the exchange rate as of Dec 31st or the day I withdrew?
--- Then, I understand I need to fill out Form 1116. I checked General Category Income Type, then Other Gross Income, then it asks for Description (RRSP withdrawal) and Amount for Canada (what do I put here?)

Ask the Experts - MetLife - Jan 2024

RobertB4444

Level 15

Using your example - the total distribution is $20,000 and the taxable amount is also $20,000.

Enter them in USD and use the exchange rate for the date that you received the money (or as close to it as possible).

The amount of foreign tax that you can deduct is the amount of tax that you pay. You say they withheld $5000 but that isn't the actual tax bill. You need to figure out the actual tax that you are paying out of that $5000 and then enter that as your deduction amount.

@Cutesy

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CutesyAuthor

Level 2

Thank you!
Well I only received the $15,000 so the $5000 is what I "paid". I am not required to file Canadian taxes because of this standard 25% non-resident fee (and I have no other Canadian income).

However I may try to file there to see if I can get a bit of a reduction in those taxes paid...they would look at my total World Income...but I wouldn't have a response on that question for a few months.

CutesyAuthor

Level 2

So, under Foreign Tax Credit...Other Gross Income-Canada...what do I enter for Amount for Canada, is it the $5000? Sorry I'm confused because the title of this page refers to Income...