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 form RC267.
Note: If you’re completing the RC267 page of H&R Block’s tax software, and you also need to file an RC268 and/or RC269 form, you won't be able to NETFILE your return. Instead, you’ll need to file a paper copy of your return.
Am I eligible to deduct my contributions?
To deduct your contributions to a U.S. retirement plan on your Canadian tax return, 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. retirement 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
Note: If your contributions were made while you were working in the U.S., you’ll need to report the amount that qualifies for tax relief in the U.S.
- Your resident compensation for 2018 is the total of your salaries, wages, and other amounts from your employer, excluding any amounts that are exempt from income tax in Canada because of the Canada-U.S. tax convention.
- 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 American 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 2018 tax software:
Note: Remember to report all amounts in Canadian dollars. You can convert your contribution amounts by using the average annual exchange rate.
- Under the PREPARE tab, click the IN THIS SECTION icon.
- In the Pension and retirement plans box, click the Add This Topic button.
- 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), then click Continue.
- When you arrive at the RC267 page, enter your information into the tax software.