Are you a Canadian resident who commuted across the border for work and contributed to a retirement plan with your employer in the United States? If so, you can use the RC268: Employee contributions to a United States retirement plan – cross-border commuters to deduct some of your contributions. Your deductions will be based on your actual contributions, the amount you were allowed to contribute under U.S. law, and your registered retirement savings plan (RRSP) contribution limit for the year.
In order to deduct your contributions, you must meet all of the following conditions:
- The amount you were paid for working as an employee in the U.S. is taxable in the U.S.
- Your employer is a resident of the U.S. or has a permanent establishment there
- Your retirement plan contributions were made because of your work in the U.S. (for which you received taxable pay)
- Your contributions were made while you were working in the U.S.
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 – cross-border commuters (RC268).
- When you arrive at the page for RC268, enter your information into the tax software.
Note: If you complete the RC268 page in H&R Block’s tax software, as well as the RC267 and/or the RC269, you won’t be able to NETFILE your tax return. Instead, you’ll need to submit a paper return.