Hello! I live in the U.S. as a permanent resident and I have RRSPs in Canada where I have not contributed or withdraw any money this year. The total amount on the RRSPs is over the IRS threshold so I am reporting them on form 8938. When I report the interest earned on this accounts as income on my 1040, it affects my IRS refund. It is my understanding that U.S.-Canada Income Tax Treaty provides an option to elect to defer current U.S. taxation on the accrued income. I am not sure how to do this. Do I need to report the interest earned on RRSPs or not? If so, what I should do to get the US taxation deferral?
Thanks in advance!
Alex
IRS on interest earned on RRSPs
Moderator: Mark T Serbinski CA CPA
Re: IRS on interest earned on RRSPs
Income (including not interest, but also other internal distributions and gains generated by sales) from RRSP is not reportable to IRS, unless and until a withdrawal is made.
No form is needed for this specific purpose. Of course, it is reportable as FATCA, as you mentioned, as well as FBAR.
No form is needed for this specific purpose. Of course, it is reportable as FATCA, as you mentioned, as well as FBAR.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: IRS on interest earned on RRSPs
...including not ONLY interest...
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: IRS on interest earned on RRSPs
Thank you so much! I really appreciate the help!
Re: IRS on interest earned on RRSPs
I will have RRSP total approx 26k (contributions prior and this year) by the end of this year. May I know except FABR, do I also need file any other schedules to IRS?
And would there be any reporting requirements for New York state and New York City?
Is it only California in U.S. will not follow treaty rules and tax on income earn in RRSP?
Thanks.
And would there be any reporting requirements for New York state and New York City?
Is it only California in U.S. will not follow treaty rules and tax on income earn in RRSP?
Thanks.
Re: IRS on interest earned on RRSPs
If that is all you have, then only FBAR is required.
Only California taxes internal RRSP income.
Only California taxes internal RRSP income.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: IRS on interest earned on RRSPs
Thanks a lot nelsona.