Tax refund from the IRS and CRA foreign tax credit
Moderator: Mark T Serbinski CA CPA
Tax refund from the IRS and CRA foreign tax credit
This is the first time that I got a refund from the IRS. How do I go about the refund on the Canadian side? Do I apply that as income for next year or simply subtract it from the foreign tax credit amount?
Re: Tax refund from the IRS and CRA foreign tax credit
The foreign tax you claim on your CDn return comes from the tax you calculated on your 1040. You should have already accounted for the refund when determining your foreign tax credit in Canada.
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