IRA to RRSP transfer

[jferna27]

Looking for advice on this transfer! Assume all values converted to CAD. Moved back to Canada permanently in 2023 from working in USA on TN visa.
- Withdrew $30k from IRA, taxed 25% (15% tax 10% penalty) topped up $22.5k to $30k with additional funds, contributed full $30k to RRSP
- Tax time for CRA Reported $30k IRA withdrawal as foreign income, also reported $30k contribution transfer to RRSP
- So far no extra taxes from Canada, need to claim back 25% tax I paid in USA ($7500)
- Made $70k in Canada and paid $18k in Canadian income
- From the foreign income and FTC sheet I am credited 15% of the tax on the $30k, so $5000 of the $7500 I paid to the USA

How can I claim the remaining 10% penalty in full on my CRA return? I have tried "Other Deductions" line 25600 and 23200 but these will give me a % of taxes paid on income and I don't think I am supposed to put anything in there because I already reported the income on the full $30k on the FTC worksheet.

Thank you in advance for any help!

[nelsona]

Pension income from US, since it was not periodic, is NOT limited to the 15%, so the Cdn form should not be limiting your US tax,

[jferna27]

Is it correct to use form T2209 for this case? I am still not able to claim the full amount because of the calculation on the T2209 (IRA amount/net income in Canada) X basic federal amount. This ends up being a value lower than the taxes I paid in the USA and therefore I am only able to claim the lower amount!

[nelsona]

Correct. For this type of transfer to work, you must have a good income in Canada.