RRSP deduction in US FED Tax

[spocket]

Hi there. I am very grateful for all the good information I found in this forum over the past years.

According to the US/CDN tax treaty changes, I understand that 401K and RRSP are now mutually recognized.

I found good info on how to claim the 401K contributions when I do my taxes in Canada by searching the forum; Did not get much luck about claiming RRSP deductions in US returns though.

Can somebody point to me in the right direction about where in the US FED declaration can I use a deduction for the RRSP contributions made in 2009 year?

I am a canadian resident, working in US (daily commuter), filing in US using 1040NR + article XXV(4) using a '1040 MFJ pro-forma' to reduce my taxes in USA.

I hope that my RRSP contributions can be used to either
- reduce my effective tax rate in 1040-Proforma (MFJ)
- reduce my taxable income in 1040NR

Any pointers would be much appreciated... Thanks in advance!!

[nelsona]

Only employee RRSP contributions made througha Cdn employer planare deductible. This is in the new treaty.

This is the same for canada in that only 401(k) type contributions are recognized, and not private IRA contributions.

Since it appears you do not work for a Cdn employer, I'm assuming your RRSP contributions must be to a private plan, and thus are not deductible.

Remmebr, in preparing your 1040, your goal is merely to reduce your US tax to a level such that you use up all your US tax (incl. state and Fica) on your Cdn return.

Another thing to watch is that your 401(K) deduction on your Cdn return is limited to your RRSP contribution room minus any other RRSP deductions. If you made RRSP contributions as well as 401(K) you may have to 'hold back' some of the RRSP contributions you made and deduct them in a future year.

[spocket]

Nelsona: very informative answer. Thanks so much for your help.

You were right about the RRSP: it was done in a private plan and therefore not admissible.

I have been doing exactly what you describe at the end of your post.