RRSP contribution tax reporting

[sdhou]

I am a non-resident Canadian, living in the US. I have some rrsp contribution room from my last year in Canada. I want to do the contribution this year, but won't be able to deduct it since my only Canadian sourced income is bank interest and dividend (tax withhold by US broker). I was told I need to file schedule 7 to notify cra of the unused rrsp deductible amount. Do I need to report my canadian sourced income while filing the taxes and then claim treaty? Another easier option will be to not file sch7 and forgo the unused deduction. What will be the proper way to handle it.
Thank you.

[nelsona]

Assuming you left Canada in a previous year, and are thus a non-resident, you would file a non-resident return, reporting no income (income subject to NR tax, like dividends and interest are not reportable on a non-resident return, and include SCH 7. Nothing to do with treaty.

Be sure that your Cdn RRSP manager will accept new monies from non-residents (they must be told you are US resident). Many do not.

I might suggest that making an RRSP contribution with some future possibility of a deduction may not be the wisest choice for you. There are many tax advantaged investments that you could use right now, such as your US home, Roth, HSA, US firms yielding qualified dividends, etc.

[sdhou]

Thank you so much, Nelsona. That makes sense.

Yes, I have to call my bank to do the transfer, online is disabled. I was told only certain state specific agents are allowed to serve US residents due to regulations.

It may sound weird, but want to keep the money in Canada to diversify some risk. Rrsp contribution only way to invest in the stock market without moving the money to the US, and may also help reduce US taxes slightly. Both Roth(backdoors) and HSA taken care of already. By US home do you mean paying down the mortgage or invest in real estate?

[nelsona]

... your own home.