I am compiling my tax related information from various accounts for preparing for 1040 filing shortly.
For Canada, I pay 25 % of gross rental as tax to CRA and get refund by filing 216 return. I noticed that last year's CRA refund consisted of not so small interest amount on XIII tax paid.
I also file tax return to India and get refund from tax withheld. That refund also consists of significant interest on advance tax paid due to high interest rates/ inflation there.
Are the interests received from tax authorities also to be included in 1040?
A finer point but I donot think I was paying much attention in previous years.
Interest on 216 return refund from CRA taxable on 1040?
Moderator: Mark T Serbinski CA CPA
Any time you have claimed tax as a dedcution, and you get some or all of it back, you need either (in the case of foreign tax, or US federal tax) amend that return, or (in the case of state tax) include it on the current years return.
And OF COURSE any interest you recieve from any source is reportable on your US return -- it's world income.
And OF COURSE any interest you recieve from any source is reportable on your US return -- it's world income.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best