US resident RIF/LRIF withdrawals
Moderator: Mark T Serbinski CA CPA
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- Posts: 27
- Joined: Wed Sep 26, 2012 12:27 pm
- Location: Lake Wales, Florida,33859
US resident RIF/LRIF withdrawals
I am a US/CDN citizen permanently living in the US with a RIF and LRIF in Canada. I left Canada and moved back to the States in 2007 and filed all proper tax forms.
2013 is the first year I had to withdraw from my RIF and LRIF and withdrew my required minmum amounts , on a monthly basis, and was subject to a 15 % Canadian withholding tax at source.
Since I am no longer required to file Canadoan Income Tax returns, is there any way I can get any of this witholding back??
I understand the "income" allocation of the RIF andLRIF withdrawals will have to be rerported as income on my US returns--correct??
Thank you
2013 is the first year I had to withdraw from my RIF and LRIF and withdrew my required minmum amounts , on a monthly basis, and was subject to a 15 % Canadian withholding tax at source.
Since I am no longer required to file Canadoan Income Tax returns, is there any way I can get any of this witholding back??
I understand the "income" allocation of the RIF andLRIF withdrawals will have to be rerported as income on my US returns--correct??
Thank you
Thanks, Artistic95
Pension income is eligible for reduced taxation by filing a what is known as a 217 return, on which you report your world income. If your world income is sufficiently small, and your Cdn pension income is a large part of your income, then you *might* be able to reduce the tax rate on your pension below 15%.
From my experience, your total world income would have to be less than $25K for the year for this to work.
As to US taxation, I mentioned this in your other thread. The 15% tax can be used as a credit on your US tax return using form 1116, or as a deduction on schedule A.
From my experience, your total world income would have to be less than $25K for the year for this to work.
As to US taxation, I mentioned this in your other thread. The 15% tax can be used as a credit on your US tax return using form 1116, or as a deduction on schedule A.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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- Posts: 27
- Joined: Wed Sep 26, 2012 12:27 pm
- Location: Lake Wales, Florida,33859
Nelsona, I have a follow up question: Last year, I claimed the foreign tax credit, on form 1116, for the tax withheld in Canada. However, the credit amount was less than the amount withheld. I was not able to figure why. Have I possibly made a mistake or is there another reason for the discrepancy?
Thanks.
Thanks.
It is always the choice you need to make. 1116 gives you CREDIT, dollar for dollar, except that it is never fully credited.
Schedule A gives you DEDUCTION, which by definition means reduction in tax only tt your marginal rate, not dollar for dollar.
You need to do the tax both ways and choose.
Schedule A gives you DEDUCTION, which by definition means reduction in tax only tt your marginal rate, not dollar for dollar.
You need to do the tax both ways and choose.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing