Can I get RRSP withholding tax back?

redblue · Post by **redblue** » Thu Dec 30, 2010 12:42 pm

I'm searching on this web site for an answer to my question,couldn't find it yet.If the question has been asked ,pls direct me to the link.

Before I moved to USA,I had withdrew some money from my RRSP and of course CRA deducted some tax on it .I was wondering if there is a way that I can get that withholding tax back when I file my taxes in 2011 for Canada OR USA in 2011?

Thnx

nelsona · Post by **nelsona** » Sat Jan 01, 2011 3:41 pm

You can maybe get some tax back when you file your departure return this spring.

By withdrawing before leaving, the withdrawal will be added to the rest of your 2010 income earned in Canada, so will likely be highly taxed -- you may even owe more than was withheld.

ssss25 · Post by **ssss25** » Sat Jun 09, 2012 1:49 pm

Hi...

I would like to clarify something and correct me if I am wrong. The withholding tax is not a penelty... its really just a hold on your funds until the current tax year is filed and they find out how much to exactly tax the rrsp withdrawal income. That is if I withdraw from rrsp say 10,000 but for the sake of example I have 10,000 tax credit from education or donations then the.rrsp income is not taxed if o user my tax credits? In fact they will refund me the withholding tax. Am I correct in this assumption?

Is there any loss to withdrawing if I have an equal tax credit?

Thanks...

nelsona · Post by **nelsona** » Sat Jun 09, 2012 1:55 pm

it depends. for non-residents, the 25% tax is the final tax. you must have little other income and then file a special return to get some back.

it is not the same as withholding tax that cdn residents pay, and then add it to all their other taxes and income