Cross Border Tax Q&A – Deduction of RRSP Contributions on 1040 Return?

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Each year I help over 500 clients file their Canadian and US tax returns as well as plan for both their Canadian and US investment accounts. I also regularly help new US clients plan for their move to Canada.

Feel free to reach out via email at phil@philhogan.com or by phone or text here 250-661-9417.




Question

Dear Sir

I’m a US citizen (born in the US) living in Ottawa, Ontario Canada. I’ve prepared my own Canadian taxes and US taxes (1040 income tax returns) for the last 10 years including the filing of foreign tax credits on form 1116 IRS.

My question is this: can I deduct my Canadian RRSP contributions on my US 1040 income tax return? I’ve done some preliminary research but I’m unsure of the specific treatment under the treaty.

Any insight would be appreciated.

Sincerely

XXXXXX

Answer

Hi XXXXXX

In most cases you cannot deduct your Canadian RRSP contributions on your US income tax return. There is a provision in Article XVIII of the Canada-US treaty that allows for a deduction in certain specific circumstances e.g. contribution to an RRSP through US employer, however this does not seem to fit your situation.

Hope that helps and please feel free to call me if you have any other questions.

Regards

Phil Hogan, CA
250-661-9417

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