I'm trying to report an RRSP distribution using Turbotax. Taking the credit seems to be the best option for me, having also tried the deduction. I'm subject to the AMT this year, and almost none of my deductions were allowable under the AMT. Anyway, in Form 1116, it asks my gross income from sources in Canada. Would this be the income (in US$) before or after Canada took the 25% withholding?
Thanks in advance
RRSP Distributions and Form 1116
Moderator: Mark T Serbinski CA CPA
Sorry there's no edit function here...
To further clarify, I have three numbers to choose from, in US $, of course: The total withdrawn from the account, the total sent to me after Canadian withholding was taken out, or the amount actually taxable by the US (which as a US citizen, is the diff. between what I put in and what I took out).
In reading this forum, the 1116 instructions, and limited Turbo help, I have no idea which is correct, and it makes a huge difference.
To further clarify, I have three numbers to choose from, in US $, of course: The total withdrawn from the account, the total sent to me after Canadian withholding was taken out, or the amount actually taxable by the US (which as a US citizen, is the diff. between what I put in and what I took out).
In reading this forum, the 1116 instructions, and limited Turbo help, I have no idea which is correct, and it makes a huge difference.
The income that is eligible for calculating the credit is the ammount you indicated on line 16b of your return: the taxable amount of your withdrawal, which you determined by filling out form 8891. It should in almosty all cases be almost nothing compared to the withdrawl you made.
See the multpile threads on 8891 on this forum.
Tax is NEVER removed from income in determining gross income.
See the multpile threads on 8891 on this forum.
Tax is NEVER removed from income in determining gross income.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
[quote="nelsona"]The income that is eligible for calculating the credit is the ammount you indicated on line 16b of your return: the taxable amount of your withdrawal, which you determined by filling out form 8891. It should in almosty all cases be almost nothing compared to the withdrawl you made.
See the multpile threads on 8891 on this forum.
Tax is NEVER removed from income in determining gross income.[/quote]
See the multpile threads on 8891 on this forum.
Tax is NEVER removed from income in determining gross income.[/quote]