TFSA Withdrawal/Distribution

[CdnAmerican]

This should be a simple question ... but I can't find a clear answer on the forum or on the web.

I am a US citizen, living in Canada, and contributing to my TFSA yearly. I am up to date with yearly filing of my 3520/3520A, and have claimed income from the growth (capital gains from stock sales and dividends) in the TFSA each year. on my IRS forms. I have never taken any money or any distributions out of the TFSA, and I am the grantor/owner of it.

When I start to withdraw from the TFSA, I assume that since I have claimed gains on it each year and the initial contributions are post-tax, the withdrawals are not taxable (other than any gains from that specific year's stock sales/dividends), but I can't find confirmation of this. How do I indicate on my 3520/3520A that it is a distribution on income that has already been subject to tax and basically paid from me to myself (and hence, not taxable now)? Or, is there part of it which is taxable?

Thanks!

[nelsona]

As you are aware, your TFSA, from a taxable account point of view is simply an investment account in the eyes of IRS, so the income you report arising from a withdrawal would simply be any gain/loss from the sale of the particular investment(s).

Not too sure about the 3520, as I chose to not view the TFSA as a trust.

[CdnAmerican]

Thanks nelsona! That makes logical sense to me. It just seemed like the filer is compelled to count the withdrawal as a distribution, and then as taxable income, even though that results in double taxation and wasn't logical.

I wish I had just not claimed the TFSA as a trust in the first place, but don't know how to get out of it now ..