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Briefly, I am a US citizen who worked and lived in Canada for 5 years. At the time, I thought that I might stay there, so I bought an RRSP. Long story short, after moving back to the US a couple of years ago, I found that SEC rules prevented me from moving funds around within the RRSP. Between the falling exchange rate, the extremely low rate of return I was getting, and the paltry sum (about $3K) of the account, I decided that the best thing to do was to cash out, take the Canadian tax hit, and use the cash in an IRA here.

During my time in Canada, I claimed the foreign earned income credit, and never came near the limit (sadly), so I never paid US taxes (although I certainly paid Canadian taxes). So now I want to know how to handle the income from the RRSP on my US return, and if anyone thinks its worth the trouble to file a Canadian return for this alone. i.e., will I get any money back from Canada on the withheld taxes, and if I do, will I have to claim this on my US return for 2001?

This is such a small amount of money, that this has the potential of being more of a hassle than it was worth to cash out, but that ship has sailed.

Thanks for any help in advance

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