USA Child Tax Credit Effect on Foreign Tax Credit

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Windsorguy90210
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Joined: Tue Jul 09, 2019 7:01 pm

USA Child Tax Credit Effect on Foreign Tax Credit

Post by Windsorguy90210 » Tue Jul 09, 2019 7:34 pm

I work in the USA and live in Canada, and am a commuter green card holder. My 8 year old son is a dual USA/Canadian citizen and has a social security number so I believe I can claim the new $2000 child tax credit for him. The issue I've had is my accountant told me if I do, then my USA foreign tax credit that gets applied against my Canadian tax owing will be reduced by the same amount($2000) as required by the CRA rules. So theres no point in claiming it. Is that correct?

nelsona
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Re: USA Child Tax Credit Effect on Foreign Tax Credit

Post by nelsona » Wed Jul 10, 2019 8:47 am

If the credit brings your US tax burden below your Cdn burden, it is correct that there is no overall benefit to taking the credit, but that could be said about many US tax breaks for Cdn residents.

It is up to you at that point whether you want to give more to CRA or more to IRS. You should be focusing on lowering your CRA taxes by finding Cdn tax credits and deductions at this point.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Beloa00
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Joined: Sun Feb 10, 2019 4:29 pm

Re: USA Child Tax Credit Effect on Foreign Tax Credit

Post by Beloa00 » Thu Jul 11, 2019 1:18 pm

As I understand the US Green Card holder is US tax person, the same as US citizen. Why you cannot be deemed non-resident of Canada for tax purposes?

nelsona
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Re: USA Child Tax Credit Effect on Foreign Tax Credit

Post by nelsona » Mon Jul 15, 2019 11:32 am

He LIVES is Canada, per the terms of a commuter GC (which is not the same as a GC). So he must be a Cdn resident. He would need to move to US to be a US resident.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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