Withholding v. Tax Paid

Withholding is best thought of as an estimate of tax. So, when you have income from some source, some amount is withheld ofr your future tax obligation. The amount withheld for tax, though, may not be the actual amount of tax that you are required to pay. For example, in the case of the withdrawal of Canadian RRSPs by a US resident, if you withdraw them in a lump sum, the tax treaty indicates...