Hi, Nelson, I am using uFile to file my canadian return. I have a large amount of tuition amount. Therefore, I found that the software did not take into account my foreign TAX credit at all ( They used about $7000 tuition amount, so the line 13 of my schedule 1 is 0).
My question is: Can I use Foreign Tax credit (about $1300) so I can save tuition amount for next year?
BTW, Nelson, do you have a paypal account? I want to buy you a beer because u at least helped me save $100 to avoid HR Block visit ( And they will make mistakes ). Thanks.
Canada TAX, does Tuition Amount overrule foreign Credit?
Moderator: Mark T Serbinski CA CPA
Unfortunately, if you go thru the calcs on schedule 11, I think you will find that tuition credit must be used first to bring your fed tax to zero, amd only trhe leftover can be brought forward.
Please elaborate though as to why you would have any foreign tax to report, if you made so little money anyways. Either your foreign income should noy have been taxed, or it should not be reported in Canada if you are a non-resident of Canada, and therefore the foreign tax is not reported either.
Sounds strange.
As to beer. Thanks but I would not want to violate my amateur status, in case cross-border becomes an Olympic event.
Please elaborate though as to why you would have any foreign tax to report, if you made so little money anyways. Either your foreign income should noy have been taxed, or it should not be reported in Canada if you are a non-resident of Canada, and therefore the foreign tax is not reported either.
Sounds strange.
As to beer. Thanks but I would not want to violate my amateur status, in case cross-border becomes an Olympic event.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Hi, Nelson, thank you for prompt reply. A couple of beer will not threaten your Olympic status. Anyway, if we meet in the bar some day, it is on me.
Are you the same Nelson in Twin City mail list?
My case: I made about US$17500 last year in US in two months. I had some EI benefits in Canada around CAD$4000. The foreign tax credit I mentioned are social security and Medicare - around US$1300, they can be treated as Foreign Tax Credit in Canada, is that right? (There indeed were some Tax held by IRS and state, but I believe I can get all of them back.)
As you said, if I go through schedule 1, I have to use tuition amount first. That is a big waste for me ( Software used around $8000 to make the basic federal tax down to 0). Can I use the Foreign Tax Credit next year?
I have another question regarding deemed non-resident. For example, if I live and work in USA in 2006, my kid lives with me. My wife alone goes to school in Canada, We all Canadian Citizens without GreenCard, Can I say I am a deemed non-resident in 2006 for Canadian Tax?
Thank you and have a nice day.
Are you the same Nelson in Twin City mail list?
My case: I made about US$17500 last year in US in two months. I had some EI benefits in Canada around CAD$4000. The foreign tax credit I mentioned are social security and Medicare - around US$1300, they can be treated as Foreign Tax Credit in Canada, is that right? (There indeed were some Tax held by IRS and state, but I believe I can get all of them back.)
As you said, if I go through schedule 1, I have to use tuition amount first. That is a big waste for me ( Software used around $8000 to make the basic federal tax down to 0). Can I use the Foreign Tax Credit next year?
I have another question regarding deemed non-resident. For example, if I live and work in USA in 2006, my kid lives with me. My wife alone goes to school in Canada, We all Canadian Citizens without GreenCard, Can I say I am a deemed non-resident in 2006 for Canadian Tax?
Thank you and have a nice day.
ONE WORLD
No, your US tax cannot be brought forward from one year to the next as a credit.
Ad to "deemed non-resident" DNR status. It is possible that you could claim such status, so long as you drastically limit your visits to Canada, as well as any othwer ties you might have, including drivers license and medicare card.
Some have been successful in making such a claim.
It would have been best if your wife had first accompanied you down to US and then returned to canada as a student, but this would only marginally help your case.
One point though, is that your DNR date would not be "2006" or "2005"; it would be a SPECIFIC date at which time you tipped the scales to US. If you moved with your kids on November 1st 2005 and statrted working, then that is your departure date and you should be filing your 2005 return accordingly (as an Emigrant), not reporting your US income, nor claiming foreign tax credit, and prorating your line 300 amount. You should also then be giving back any GST and CCTB you received after that date.
Ad to "deemed non-resident" DNR status. It is possible that you could claim such status, so long as you drastically limit your visits to Canada, as well as any othwer ties you might have, including drivers license and medicare card.
Some have been successful in making such a claim.
It would have been best if your wife had first accompanied you down to US and then returned to canada as a student, but this would only marginally help your case.
One point though, is that your DNR date would not be "2006" or "2005"; it would be a SPECIFIC date at which time you tipped the scales to US. If you moved with your kids on November 1st 2005 and statrted working, then that is your departure date and you should be filing your 2005 return accordingly (as an Emigrant), not reporting your US income, nor claiming foreign tax credit, and prorating your line 300 amount. You should also then be giving back any GST and CCTB you received after that date.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Thanks, Nelson. I may try to argue. Sometimes, I just feel it is not so fair, for example, I can't claim 401K, moving expense from Canada to USA and so on. I need to pay two rents, two cars, two separate car insurances, air tickets ...., not too much left.
Anyway, this is life. Just let you know, I am a computer guy ( Are you a computer guy too?) If you need some help, just drop a line. I will try my best.
Anyway, this is life. Just let you know, I am a computer guy ( Are you a computer guy too?) If you need some help, just drop a line. I will try my best.
ONE WORLD
It would probably be to your advantage to simply be a contractor living in Canada. All your US expenses could then be written off (and you would only pay Cdn CPP and not SS taxes).
You would then keep your Cdn residence and health coverage
You would then keep your Cdn residence and health coverage
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
I did not suggest you work at home. My suggestion is to work as a contractor and keep your Cdn residency. This would be easy since your wife lives in Canada
By keeping Cdn residency you can apply for a coverage certificate from CPP and aviod 15% SE tax in US, and you can write off all your trips etc.
By keeping Cdn residency you can apply for a coverage certificate from CPP and aviod 15% SE tax in US, and you can write off all your trips etc.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing