Dual Citizen Reporting IRA Withdrawal

[CDNDUAL]

Hi,
I am a Dual CDN/US Citizen, residing in Canada. I cashed out a US IRA in 2018 (lump sum), and this is my only US source income. I understand that I will pay taxes to the US on this withdrawal including a 10% early withdrawal penalty (the bank already withheld some, but the actual amount is calculated at tax time), and that I can claim this as a foreign tax credit on my CDN taxes.

However, I seem to be caught in a loop, whereby I need to know my CDN taxes paid for Form 1116 calculations, but I will not know that until I complete my US taxes (including 1116). So do I fill out my CDN taxes as if I did not have the IRA income, and use those numbers for Form 1116, and then determine my US taxes and redo my CDN taxes with this income and the taxes paid on it (incl. penalty)? Or something else?

Thanks in advance!

[nelsona]

You need to do both taxes, reporting all income, but without any foreign tax credits, and this will give you the Cdn tax rate and the US tax rate you need for FTC.
Then you do your 1116 and Cdn foreign tax credits. That is it, no looping.

[CDNDUAL]

Perfect, thanks!