Tax credit for RRSP cash in on NY State taxes?

canroc · Post by **canroc** » Mon Apr 07, 2008 4:57 pm

Thanks to this excellent forum and nelsona's generous replies, I have figured out my Federal tax return re my RRSP cash in of 2007.

When doing my NY State tax return however, Turbotax does automatically show a means to apply for a tax credit for Canadian taxes paid. I did find a reference on the Web to IT-112-C 'New York State Resident Credit for Taxes Paid to a Province of Canada".

Has anyone on this forum who has cashed in their RRSP, completed a NY State tax return? And if so, did you use this form?

Thanks.

nelsona · Post by **nelsona** » Mon Apr 07, 2008 5:28 pm

Very few states allow a foreign tax deduction, but NY is one.

However, it is for provincial tax, not federal, and none of your RRSP tax is provincial.

canroc · Post by **canroc** » Mon Apr 07, 2008 9:30 pm

[quote="nelsona"]Very few states allow a foreign tax deduction, but NY is one.

However, it is for provincial tax, not federal, and none of your RRSP tax is provincial.[/quote]

Thanks for the reply. Not good news though. I'll be fully taxed by NY State on my RRSP gains.

BTW, I had a typo, in my note. I meant "Turbotax does NOT automatically show a means to apply for a tax credit for Canadian taxes paid". It seems by your reply that this should be expected.