Is there any way an RRSP contribution can be deductible on US taxes?

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CdnAmerican
Posts: 245
Joined: Tue Aug 30, 2011 12:15 am

Is there any way an RRSP contribution can be deductible on US taxes?

Post by CdnAmerican »

Hi all - simple question. I am a USC who is self-employed. Is there any way to make an RRSP contribution that would be deductible on my US taxes?

Thanks in advance!
Not a professional opinion.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Is there any way an RRSP contribution can be deductible on US taxes?

Post by nelsona »

I presume you are living in Canada.
As a self employed, no. Only contributions made by an employee to a company sponsored plan are deductible on 1040, up to the 401k limit.
May I ask what your situation is that would make you need that deduction in US? Most Americans in Canada do not need this. Remember that you are not subject to SE tax in US.

If you were incorporated you could set up a individual pension plan, but I doubt that it would be worth it.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
CdnAmerican
Posts: 245
Joined: Tue Aug 30, 2011 12:15 am

Re: Is there any way an RRSP contribution can be deductible on US taxes?

Post by CdnAmerican »

Thanks nelsona! Yes, I am living in Canada. I'm asking because I was close to owing US tax this year, and am fearful that with the change in the std deduction + loss of exemptions that I might owe a little next year. I am not incorporated as I have enough mess with taxes to deal with already (e.g., TFSA, RESP). I always use the 2555; I tried it with the 1116 this year, but would have owed some if I went that way. I could very well have messed up that form, however, as it does seem odd to me that my Cdn taxes would not be sufficient to offset any US tax burden. Where I am at risk is with exchange rate variability which results in passive gains in the RESP (which is mark-to-market).

Thanks for the comment .. that was what I thought as well.
Not a professional opinion.
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