I am a US/CAD dual citizen living permanently in the US. I am receiving income via an RRIF. In 2014 it will be $36,000 CAD less 25% withholding tax. In 2015 it will be $60,000 CAD. I read somewhere my CAD withholding will be 30%. My Federal US tax rate is more like 20%. Is there any way I can get some of this withholding back from CRA, or is it just "gone"?
Please and thanks!
CRA RRIF Withholding Rates for Dual Citizen US Resident
Moderator: Mark T Serbinski CA CPA
The most your RRIF can be withheld by CRA is 25%. The 30% figure was incorrect.
Now, done properly, you can exrtract *some* of your RRIF at 15% (the first 10% of its beginning-of-year value), but otherwise it is just like RRSP withdrawal -- 25%. Are you collapsing your RRIF quickly, or are yoy taking out "small" chunks every year?
If your RRIF income is all the income you have there are ways of recouping some tax back from CRA by filing a special return, but if you have much other US income, there won't be any benefit to doing this.
How much you get credited on your US return depends on how much of the RRIF income is taxable in US.
Have you been correctly tracking the taxable value of your RRSP/RRIF since inception or since becoming a US taxpayer?
Now, done properly, you can exrtract *some* of your RRIF at 15% (the first 10% of its beginning-of-year value), but otherwise it is just like RRSP withdrawal -- 25%. Are you collapsing your RRIF quickly, or are yoy taking out "small" chunks every year?
If your RRIF income is all the income you have there are ways of recouping some tax back from CRA by filing a special return, but if you have much other US income, there won't be any benefit to doing this.
How much you get credited on your US return depends on how much of the RRIF income is taxable in US.
Have you been correctly tracking the taxable value of your RRSP/RRIF since inception or since becoming a US taxpayer?
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