Amending tax return - form 1116 and RRSP

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Confused
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Joined: Mon Mar 12, 2012 1:43 pm

Amending tax return - form 1116 and RRSP

Post by Confused »

Can somebody confirm that the complete withdrawal of a RRSP made by a US resident is considered a "Passive category income" on form 1116? I checked "General category income" but I think it's wrong.

Also, I have to indicate the amount of taxes I paid to Canada for the withdrawal on Part II of the form. Where else should it appear on the form? The instructions for the form are a bit complicated.

Thank you.
nelsona
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Post by nelsona »

It is general income.
That is the only place the Cdn tax appears.
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nelsona
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Post by nelsona »

Just to clarify, the only time RRSP income would be "passive" is if you are NOT electing to defer income, and you have not taken a withdrawal, but are reporting internal growth.

Otherwise, it is general.
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
Confused
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Post by Confused »

Thank you so much for your reply. You know so much about the topic, you are the expert. :)

I am not electing to defer the income since it is my first year in the US and I withdrew the RRSP six days after my arrival. So, I leave it as General income?

On 1a Gross Income, I indicated the total amount of the withdrawal, but I just saw in one of your posts that it should have been the taxable portion only.
On 2d (Gross foreign source income), it should be the taxable portion as well or the total amount of the withdrawal?

On part II of form 1116, do we put the taxes paid to Canada at the moment of the withdrawal on A(n) in CDN dollars and on A(r) the same amount but converted in US dollars?

Sorry to bother you with all my questions.
nelsona
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Post by nelsona »

The term "gross" on the 1116 refers to the "gross income" you reported on 1040, which is the "net taxable income" from your RRSP withdrawal. You have to use 8891 to do this correctly.

I think you can figure out the rest. You MUST use software to do this.
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
agushartono
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Re: Amending tax return - form 1116 and RRSP

Post by agushartono »

I have been using an accounting software to handle my accounting problems until now and I've got so many benefits by using it, I think you can solve yours by using it too, best regards
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