CRA Foreign Tax Credit - IRA withholding, penalties, refunds

[GatorSPO]

So, early distribution of an IRA by a Canadian resident triggers 20% withholding + 10% penalty at tax time on the US side, while must also be claimed as income in Canada.

If certain credits such as the child tax credit are applied against this on the American-side of things so that it triggers a net refund on a 1040, I'm assuming the amount withheld or the penalty cannot be applied for as a foreign tax credit against that income on the Canadian side, as in effect no taxes are owed or paid at the end?

[nelsona]

Correct. You must actually owe tax for any given year for it to be claimed