US Child Tax Credit - What tax to use

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cullen
Posts: 41
Joined: Sun Mar 27, 2005 1:34 am
Location: Greenville SC

US Child Tax Credit - What tax to use

Post by cullen » Sun May 31, 2020 5:31 pm

Dual US/Canadian Citizen with cross border income living in Canada

I have both US and Canadian employment income and file as a resident in the US since I am a US citizen but now we live in Canada

When I compute the US tax on my wages for the T2209, do I use the amount before the child tax credit or after the child tax credit? Since all our children are US citizens, we get the 2K per child credit. I was told once to use the amount before the child credit

Thanks in advance
Joe

nelsona
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Re: US Child Tax Credit - What tax to use

Post by nelsona » Mon Jun 01, 2020 7:03 am

The child tax credit reduces your US taxes, just like any other item might. So, the reduced tax is what you use towards your foreign tax credit.
who 'told' you otherwise?
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

nelsona
Posts: 16427
Joined: Wed Oct 27, 2004 2:33 pm
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Re: US Child Tax Credit - What tax to use

Post by nelsona » Mon Jun 01, 2020 7:07 am

The only credit you don't use in computing foreign tax eligible for T2209, is the FTC on the 1040 (ie form 1116). That you take after your calculation.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

cullen
Posts: 41
Joined: Sun Mar 27, 2005 1:34 am
Location: Greenville SC

Re: US Child Tax Credit - What tax to use

Post by cullen » Mon Jun 01, 2020 7:34 am

Thank you Nelsona
Joe

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