Well...Where does the RRSP debit/credit appear on a 1040...?

KevKiki · Post by **KevKiki** » Sat Mar 11, 2006 12:30 pm

Hi Folks..well my wife and I ended up going to JAckson Hewitt with our taxes for the US portion..more for her taxes than mine....my CDN return was fairly straightforward thanks to Nelsona and I did it myself....

Anyway..we wanted to file electronically..and my CDN income plugged in rather nicely on the 1040 and then credited nicely on the form. Then Big problem: The JH manager could not figure out how to make the RRSP income apply as a debit/credit balance on the 1040. She said she had applied it to line 16a or 16b but that it would have to balance and could not figure out how to treat debit/credit necessary for it to balance...

Where is this line applied on the 1040 for RRSP income so that it can debit/credit properly.....?

Can this be done or must the RRSP income be sent as an attachment along with the return? This will prevent e-fileing..which we weer hoping to be able to do..

Thanks for your input..

Best,

Kev

KevKiki · Post by **KevKiki** » Sat Mar 11, 2006 12:35 pm

Um...said in an easier way...theer appears to be NO form for the 8891 to file electronically..She looked through the program list in the software... EVERY other bloody one was in there except the 8891....so is a paper file a must now?

nelsona · Post by **nelsona** » Sat Mar 11, 2006 12:59 pm

You can add the 8891 form a few weeks from now by adding it to a 1040-X. It will not prevent you from e-filing.

The entire withdrawal goes on 16a and any taxable portion goes on 16b.

You do this by creating a fake 1099-R, and putting the taxable and non-taxable in tat form (you don't submit a 1099-R, just create one). Be sure the flags are set to prevent early withdrawal penalty.

The NR tax you paid goes on the gen limit 1116 or on Sched A if you are using deduction instead of credit for all your Cdn tax.