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posted Oct 27, 2024 8:12:42 AM

Do I have to claim a K-1 if the distributions are in a registered account like a RRSP or TFSA?

Do I have to claim a K-1 if the distributions are in a registered account like a RRSP or TFSA?

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1 Replies
Moderator
Oct 28, 2024 7:29:50 AM

@gmon1953 

No, you don't need to claim US distributions to registered accounts like the TFSA or RRSP.

 

Income earned within in an RRSP is not taxable until you withdraw it. So, you don't have to report any dividends or capital gains that arise from your RRSP investments. The TFSA is treated the same way, except that withdrawals are also tax free. 

 

However, while the Canada/US tax treaty recognizes the RRSP as a tax-deferred vehicle, the TFSA is not. Therefore, you may need to pay withholding tax to the US if you have US investments in your TFSA account. This withholding tax can't be claimed on your Canadian taxes, so you can't get it back with the Foreign Tax Credit. 

 

How do I report foreign income, pension, and other foreign amounts in TurboTax?