How do I get back TFSA and RRIF withholdings

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Mary
Posts: 9
Joined: Tue Jun 14, 2005 2:44 pm

How do I get back TFSA and RRIF withholdings

Post by Mary »

I'm a dual US/Canadian citizen living in US receiving an inheritance from a Canadian parent. The inheritance included a TFSA and RRIF and the proceeds of these two portions had taxes withheld (since I am in the US and was listed as a beneficiary on both). Since my understanding is that I don't owe taxes on these sorts of inheritances, how do I get the withheld taxes back? Will this involve filing a Canadian tax return (which I haven't done for decades?) Or can I somehow how get them back via my US tax return?
nelsona
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Re: How do I get back TFSA and RRIF withholdings

Post by nelsona »

There should be no withholding on the TFSA proceeds. However, the RRIF would have had some tax withheld, but in in the name of the deceased, not you.

Since these would appear to be improperly withheld, the recourse is to file an NR7-R with CRA, after your NR slips are sent to you. You may also want to contact the executor of the estate to determine exactly what tax was withheld, and on whose behalf (the deceased, the estate, and/or you).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: How do I get back TFSA and RRIF withholdings

Post by nelsona »

If there has been some time between the death and the inheriting of the RRIF, there might be some tax withheld in your name, but only on the post-death increase. If that is the case, then you would report the taxable amount on your US return and claim the tax on form 1116 against any US tax that would arise.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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