We are US tax payers that will be getting CPP payments and RIF distributions for the first time in 2021.
We will be getting 15% tax withheld for RIF distributions in Canada and 25% tax withheld on CPP payments.
Does the IRS recognize the taxes withheld in Canada as estimated taxes paid?
What payments does the IRS require during the tax year on the Canadian income??
Do RIF taxes withheld in Canada count as estimated tax payments for the IRS
Moderator: Mark T Serbinski CA CPA
Re: Do RIF taxes withheld in Canada count as estimated tax payments for the IRS
First, you are not supposed to have anything withheld from your CPP. Do they know you live in US? You need to get this corrected, as you cannot claim this tax as a foreign tax credit.
Any foreign tax you pay will reduce your IRS tax bill, but whether you need to pay more tax will depend on your other income. Estimated tax is based on how much you would owe after all your credits and deductions. If you owe too much at year end, you wil l(a) have a penalty and (b) need to make estimated payments for the following tax year(s).
Any foreign tax you pay will reduce your IRS tax bill, but whether you need to pay more tax will depend on your other income. Estimated tax is based on how much you would owe after all your credits and deductions. If you owe too much at year end, you wil l(a) have a penalty and (b) need to make estimated payments for the following tax year(s).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: Do RIF taxes withheld in Canada count as estimated tax payments for the IRS
Thanks for the reply. CPP updated they are not taking tax in Canada