FTC from 1040 with child credit

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
kjtpptt
Posts: 10
Joined: Tue Jan 26, 2016 3:40 pm

FTC from 1040 with child credit

Post by kjtpptt » Tue Sep 15, 2020 9:27 am

Hello - will the CRA accept an FTC from the US when the tax liability is eliminated by way of the U.S. child tax credit? I can see both arguments - no foreign taxes were actually paid vs. there were taxes owing but they were "paid" by way of a credit.
Thanks!

nelsona
Posts: 16514
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: FTC from 1040 with child credit

Post by nelsona » Tue Sep 15, 2020 5:27 pm

No. the chiid tax credit reduces your eligible foreign tax.

The stimulus payments you receive do NOT reduce your US tax as they are considered a PAYMENT.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Post Reply