RRSP and USA tax

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aaryaNew Member
Topic author
Posts: 8
Joined: 8 Jul 2008
Location: Los angeles

RRSP and USA tax

Post Mon Feb 07, 2011 9:16 pm

I moved to USA on May 2010 and I am going to file taxes as USA resident. What income I will report on USA tax form?

1) Canadian income reported on T4
Or
2) Canadian income reported on T4 minus RRSP contribution

Reason for question is, I still have some room in my RRSP and I am thinking to contribute before February 28 so I can reduce my tax in USA.
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agnelsonCanuckAbroad VIP
Posts: 3264
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Joined: 26 Aug 2009

Re: RRSP and USA tax

Post Tue Feb 08, 2011 4:37 am

Private RRSP contributions are not eligible for deduction on US returns, only company-based plans.

Don't forget tha tas a US resident, and Cdn non-resident, you need to correctly file your Cdn departure return, and you need to advise your Cdn broker that you are US resident. That will probably require no more actions in your RRSP, unless you move it to a US-compliant brokerage, like TD waterhouse.
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aaryaNew Member
Topic author
Posts: 8
Joined: 8 Jul 2008
Location: Los angeles

Re: RRSP and USA tax

Post Thu Feb 10, 2011 9:32 am

Thanks for reply.
Then I think I will not get any deduction in Canada of traditional IRA contribution if I file as Canadian residence and US non residence this year?

I already did large personal RRSP contribution for 2010 so there may be less tax if I file as Canadian residence.
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agnelsonCanuckAbroad VIP
Posts: 3264
Topics: 1
Joined: 26 Aug 2009

Re: RRSP and USA tax

Post Thu Feb 10, 2011 9:37 am

You don't have a choice how to file in canada: you are a departed resident, and must file a departure return. You won't be reporting any US income, so why will you need to worry about IRA deduction?

You need to follw this up at forums.serbinski.com. I answer these questions more fully there, not here.
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