Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@beaconhillwm.ca or via telephone at 778.433.1314. You can also read more about Phil at www.Beaconhillwm.ca/team/about-phil/
Cross Border Tax Q&A – Deduction of RRSP Contributions on 1040 Return?
05 June 10 
Cross Border Tax Q&A 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
This commentary reflects the personal opinions, viewpoints and analyses of the Beacon Hill Wealth Management Ltd. partner providing such comments, and should not be regarded as a description of advisory services provided by Beacon Hill Wealth Management Ltd. or performance returns of any Beacon Hill Wealth Management Ltd. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Beacon Hill Wealth Management Ltd. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Any discussion about taxation is for educational purposes only and should not be viewed as professional advice. Consult your tax professional for tax advice on your particular situation.
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