Serbinski Accounting Firms

Thanks for your prompt response.

Yep...NR4 is exactly 25% withholding and I'll see if I can undo the FEC form.

Time to pay up as the 1116 credit is less than the actual tax withheld.

I am a US resident. In December of 2012 I elected to take a pension cash out from my Canadian municipal plan and the check with the tax withholding was cut on December 10, 2012, but I did not receive it and cash it until January 16, 2013. Do I use the exchange rate on the day that the check was issu...

Thanks, Nelsona. Will download form from the IRS website. Instructions indicate it must be mailed to IRS Center in Ogden, UT.

I am using Tax Act online but they so not seem to have Form 3520 available. I am wondering if this form is filed separately from the regular 1040, much like the FBAR?

I am a Canadian citizen but have lived in US for 8 years and have filed US resident tax returns. My parents, Canadian residents, passed away this year and I will recieve inheritances from sale of real estate, life insurance and Canada Savings bonds. With regard to the bonds, the estate lawyers have ...

Yes...a CDN pension that was taxed at 25%. Too bad.

I understand your analysis but one more question. I assume that if I have no CDN income, say in 2014 or 2015, then I won't be able to take the FTC until I have some offsetting CDN income??

In fact, I was contemplating taking the credit as I just took a lump sum distribution from a municipal pension plan last month and thought that I could carry forward the unused CDN tax to reduce my 2013 US tax.

Is that correct?

Your points are well-taken, especially since I just ran the numbers through Tax Act and am entitled to a whopping $1868 foreign tax credit even though CRA withheld $11,989. Taking as a deduction was not significantly better. Initially I did not collapse when CDN residency ended as I am on a TN Visa ...

As I suspected but wanted to confirm. When I included gross for Line 1 1116, the foreign tax credit seemed much too generous. It would probably be more advantageous to take the tax as a deduction. Re the taxable amount, when I became US resident in 2006, value of RRSP in CDN was $42, 054 which (sadl...

Form 1116 Line 1 Cashed out an RRSP and CRA withheld 25% tax. Line 16a on 1040 is $47,000; line 16 b taxable amount is $11,200. My question...what amount would go on Form 1116, Line 1a? It refers to "gross income from sources within country" which would generally be the $47K. The taxable n...