I had tax withheld at source from several RRIF payouts. I put that income (and the tax withheld) on my Canadian return, and I've just gotten a notice from them - they have taken the RRIF income as well as Canadian bank interest off of my total income - but they also say they will send me a bill if more withholding tax is required (it wasn't taken out for one TRIF).
Should I be expecting a bill? Can I claim the tax that has already been withheld on my US return?
tax credit for withholding tax?
Moderator: Mark T Serbinski CA CPA
You were (I assume) a non-resident when you took these payouts, and therefore are subject to flat 25% on your RRIF (maybe 15% if it was less thata certain amount), and 0% on interest. This means you do not report these on a Cdn tax return.
You should use the correct tax towards the credit on your US return. if you have used the wrong amount and have already filed, then you need to amend your US return.
You should use the correct tax towards the credit on your US return. if you have used the wrong amount and have already filed, then you need to amend your US return.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best