Daily Commuter here to US, not sure if this is the right area. As a US PR (in commuter status) and Canadian citizen, how does Canada treat Roth 401ks and RRSP room. Previously doing work traditional 401k to lower US taxes, but since Canada is higher - does a Roth 401k with employer matching make RRSP room and/or Canadian taxes?
Daily commute (Detroit-Windsor) (H1b and Canada PR)
- Thread starter prudhvi
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Hello All
I have tax related questions. This is my first year paying US and Canadian taxes. I have filled my US Taxes as a non resident and now filling in Canada. So my CPA is saying that for first year my 401k deductions will not be counted as there is no RRSP limit defined yet for me so my net taxable income will be with with 401k contributions as far as Canada is concerned. Is the statement correct?
Thank you
I have tax related questions. This is my first year paying US and Canadian taxes. I have filled my US Taxes as a non resident and now filling in Canada. So my CPA is saying that for first year my 401k deductions will not be counted as there is no RRSP limit defined yet for me so my net taxable income will be with with 401k contributions as far as Canada is concerned. Is the statement correct?
Thank you
if you have never filed tax in Canada, then your accountant is correct. Your RRSP deduction limit is defined from your previous year's tax return.
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Thank you. And one more question so from next year when my RRSP limit will be defined, will my taxable income be Net Income - 401k - RRSP if I choose to contribute in both?
I believe so but it's best to check with your account. Since you've hired him, asking more questions shouldn't cost you more.
