US citizen/CAN resident early IRA withdrawal
Moderator: Mark T Serbinski CA CPA
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- Posts: 8
- Joined: Mon Apr 27, 2015 10:52 pm
US citizen/CAN resident early IRA withdrawal
Can a US citizen claim as a Canadian FTC the 10% early IRA withdrawal penalty based on ruling 2011-0398741I7? What is the mechanism -- would it involve resourcing of pension income? (since effective US tax including the penalty would typically be above 15%)
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- Posts: 8
- Joined: Mon Apr 27, 2015 10:52 pm
Right, tax rates for Canadian resident US citizens with IRAs is same as US residents. But -- how does the 10% early withdrawal penalty fit into FTC?
There was a 2011 ruling about early IRA withdrawal which was related to a case brought by a Canadian citizen. Does this ruling + verbage of US Canada tax treaty mean that Canadian resident US citizens can also apply the 10% early withdrawal penalty as a FTC for the CRA?
There was a 2011 ruling about early IRA withdrawal which was related to a case brought by a Canadian citizen. Does this ruling + verbage of US Canada tax treaty mean that Canadian resident US citizens can also apply the 10% early withdrawal penalty as a FTC for the CRA?
Why would you think your situation wouldn't apply? The penalty applies equally regardless of citizenship or residence.
You will likely, inder new guidelines to prove both the witholding and the penalty.
You will likely, inder new guidelines to prove both the witholding and the penalty.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing