RRSP deduct on F1116

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mattt
Posts: 2
Joined: Wed Jun 22, 2022 12:13 am

RRSP deduct on F1116

Post by mattt »

Hi all, I moved from Canada to US for work in 2021 and now filing my first US tax return. During the time I worked in Canada I contributed to my employer's RRSP plan as well as my own plan, now when I prepare F1116 to claim foreign tax credit, could I list these RRSP contributions as standard deduction?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: RRSP deduct on F1116

Post by nelsona »

No. RRSP contributions are not tax.

Generally deductions are on schedule A.

For these contributions to your former employers plan, you simply reduce the amount of Cdn wages you are declaring.

Most in your situation use the foreign earned income exclusion to exclude Cdn wages earned prior to moving to US entirely.

when did you move to US?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
mattt
Posts: 2
Joined: Wed Jun 22, 2022 12:13 am

Re: RRSP deduct on F1116

Post by mattt »

Thank you nelsona for replying!

I moved to US in August, and I will use first year choice and deciding between filing a dual-status report or chose to be treated as resident alien for the whole year. Now after I did some rough calculation, it seems to be that if I cannot reduce the personal RRSP contribution in Canada I will be owing tax to US gov, and the income is too high to be completely excluded from my income. Sounds like the best option would be to file a dual-status report, and in that case I'll get roughly $100- back.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: RRSP deduct on F1116

Post by nelsona »

You are not doing your US taxes correctly.

You should be using form 2555 to exclude your Cdn wages, OR you should be using 1116 to claim the Cdn tax (and reducing your Cdn wages by the amount of your work RRSP contributions.

Since you moved late in the year, you could evn file a 1040NR, since you did not meet the SPT.

Filing dual-status will never be the best option, because as a CDn you can file full year resident.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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