Hello,
When computing foreign tax credit on T1, its the Federal tax + state tax + SS tax and Medicare tax that gives you the total tax to be claimed on CRA T1.
Does anyone know if this is the same approach on the US side?
Foreign tax paid on 1040 will be income tax deducted line 22 + CPP line 18 + EI line 18.
I have done the foreign tax for T1 many times but this is the first time am computing foreign tax paid on 1040 and needed to be sure.
Thanks
Foreign Tax Credit on 1040
Moderator: Mark T Serbinski CA CPA
Re: Foreign Tax Credit on 1040
It is never income tax DEDUCTED. It is the income tax CALCULATED on your tax return (fed and Prov), plus EI and CPP (for wages)
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