Hi, green card holder for 7 years now.
I'm planning to convert RRSP to RRIF and start periodic withdraws with 15% CRA tax withheld. On Foreign Tax Credit form 1116 line 1a, will I put the total amount of the withdrawal or only the amount that is taxable by the IRS? Putting the total amount reduces the IRS tax payable quite a bit.
Also, General Category Income correct?
Thanks in advance
Total RRIF withdraw or IRS-taxable portion on 1116 1a ?
Moderator: Mark T Serbinski CA CPA
One puts only the taxable amount on the first line of your general category 1116. The term 'gross" here refers to the amount that was considered "gross income" on page 1 of 1040, which is only the "net" pension amount.
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