Canadian Income Sources and Foreign Tax Credit Form 1116

[sofarsogood]

How do I classify income type on Form 1116 Foreign Tax Credits when receiving Canadian sourced income from the following:

RRIF withdrawals with 15% withholding Tax
CPP and OAS with zero withholding
Municipal Pension Income with 15% withholding Tax

Thanks

[nelsona]

These are ALL "General Limitation" income. You would include them on one 1116, reporting the US-taxable portion of the RRIF, the US-taxable portion of the CCP/OAS, and all of the pension income. You would use the 15% taxes for the RRIF and pension, in your credit calculation (no tax from the CPP/OAS of course).

The software will then work out how much tax to credit, and carryforward the remainer.

[sofarsogood]

Thank you.

[sofarsogood]

On form 1040 when reporting Canadian Sourced Income,

RRIF withdrawals with 15% withholding Tax can be entered as Other/Misc Income
CPP and OAS with zero withholding can be classified as Social Security Income
Municipal Pension Income with 15% withholding Tax - where does this go?

Thanks

[nelsona]

Both Gross RRIF and Gross pension go on the pension line (a). the taxable potion of RRIF goes on the same line (b) along with all the pension..