DPSP and income tax

Confused · Post by **Confused** » Wed Mar 28, 2012 12:31 pm

I just realized after the facts that one of my RRSPs was a DPSP. My employer contributed 1.5 % of my salary while I was in Canada. I received a T4A from CRA upon withdrawal. I withdrew it 6 days after I became a US resident. Now I need to amend my tax return.
Is it taxed the same way as an RRSP in the US? Do I indicate that it is a DPSP on my tax return?

Thanks in advance for your help!

nelsona · Post by **nelsona** » Wed Mar 28, 2012 12:45 pm

This 100% taxable in US and canada.
In canada it will be flat taxed (25%), so should not go on your return.

It is pension income, not RRSP.

Confused · Post by **Confused** » Wed Mar 28, 2012 1:00 pm

That's not good for me... Do I use forms 8891 and 1116 to report it?
If I have to use form 8891, then the total of distributions would be taxable on 7b?
Thanks again for your help.

nelsona · Post by **nelsona** » Wed Mar 28, 2012 4:13 pm

You use 1040 to report it. Its a pension, not an RRSP. You use 1116 to get credit for the Cdn tax.

Confused · Post by **Confused** » Wed Mar 28, 2012 4:23 pm

Thank you so much. I appreciate all your help.