If you temporarily worked in Canada this year and you continue to participate in a retirement plan offered to you by your employer in the United States (such as a 401(k) plan), you might be able to deduct your contributions to the U.S. plan on your Canadian tax return using the RC267 form.
In order to deduct your contributions, you must meet all of the following conditions:
- The salary or wages you received as an employee in Canada is taxable in Canada
- Before working in Canada, you weren’t a Canadian resident and you had a U.S. plan
- Your contributions were a result of being employed in Canada, and were made while working here
- You weren’t gathering benefits or contributing to a registered pension plan, deferred profit-sharing plan, or registered retirement savings plan (RRSP) in Canada while working here
- You haven’t worked in Canada for the same employer (or a related employer) for more than 60 of the 120 months before the tax year
- If you’re a Canadian resident who commutes to the U.S. for work, and you’re a member of a retirement plan offered by your U.S. employer, complete the Employee contributions to a United States retirement plan – cross-border commuters (RC268) page in H&R Block’s tax software instead.
- If you contributed to a pension plan or social security arrangement offered by your employer in a country other than the U.S., complete the Employee contributions to a foreign pension plan or social security arrangement (RC269) page in H&R Block’s tax software instead.
Where do I claim this?
Follow these steps in H&R Block’s tax software to file your 2016 taxes:
- Under the PREPARE tab, click the LET'S TALK ABOUT 2016 icon.
- Select the checkbox labelled I contributed to a PRPP or non-Canadian pension plan.
- Click the PENSION PLANS AND INVESTMENTS icon. You'll find yourself here:
- Under the CONTRIBUTIONS TO A FOREIGN PENSION PLAN heading, select the checkbox labelled Employee contributions to a United States retirement plan – temporary assignments (RC267).
- When you arrive at the page for the RC267, enter your information into the tax software.
Note: If you’re completing the RC267 page of H&R Block’s tax software, and RC268 and/or the RC269, you can’t NETFILE your return. Instead, you’ll need to file a paper copy of your return.