Amending US tax form

[Cutesy]

Hello,

I withdrew a chunk of RRSP money in 2023, and reported it on Form 1116 in February. However 25% Canadian taxes were automatically taken when I withdrew, and so I filed a Canadian tax return for Section 217 and learned today that I will be getting some money back, effectively reducing my Canadian taxes to 15%.
So now I need to amend the US tax form. Should I do that now (May 2nd), or can I just wait until next year to correct it? I owed/paid US a bit of money this year in taxes (under $200) so wondering now if the amount increases, will they charge me interest and is it better to do it sooner rather than later?

Thank you.

[nelsona]

You should amend your1040 using 1040X and sending in a revised 1116. It is unlikely that the lower Cdn tax will result in more US tax, as you probably didn't use much of the Cdn tax on your 1116 anywys.

[Cutesy]

One year later. I'm in the same position, I withdrew $$ from RRSP and was automatically charged 25% CDN taxes. And, I plan to submit a CDN tax form to request more of a tax refund.
Is it better to delay my US tax submission until I get an answer from Canada and submit to US all at once, rather than submit US form by Apr 15 but then submit an amended US tax form (in paper) in May/June?

[nelsona]

Any time you are filing for a foreign tax credit, you should use your other tax return that you have prepared to determine the foreign tax. When you prepare the 217, you will know what your tax will be, so you should use that figure.

It is not recommended to wait until your return is approved. You KNOW what the tax is. There is no guessing here.

In any event, these changes are not really affecting your final tax in US, it will only decrease your carryforward.