Canada foreign tax credit

[Paul13]

When filing Canadian tax return as a resident, should we include all taxes paid in the US (federal, state, social security and medicare tax) as a foreign tax credit?

[nelsona]

Well, you would only include US taxes on US-based income. Any US taxes paid on Cdn-source income would need to be handled on your US return, if applicable.

And it is Fed and state taxes as calculated on your tax returns (not simply the tax withheld) plus the FICA that was withheld.

[ND]

" plus the FICA that was withheld" what's the source for that and why wouldn't Canada deny based on arguing that since work was performed physically in Canada, the employee should have instead been on T4 and since no FICA should have been paid, none can be claimed as FTC on T1?

[nelsona]

There is no indication that our posters work was performed in Canada. Many Cdn commuters work in US -- and pay FICA -- and thus correctly claim IRS/State/FICA taxes on their Cdn return against the Cdn tax.

If the poster was working in canada -- and not being paid on a Cdn payroll -- that is a whole other matter, which was not brought up.