Hey Nelsona no problem will agree to disagree, I have looked at the other lines. Several times the line that counts is line 61 this is the amount OWED for this tax year.
What if you paid no tax at all thru the 2008 tax year (Nothing on line 62) and your total tax on line 61 OWED was 7,500. The only thing you had in the payment section was line 69(First time homebuyer) for 7,500 your refund would be 0.00 because you OWED 7,500, your way would be you could not take the 7,500 OWED as a tax credit in Canada witch does not make since to me.
Filing 1040X & 2008 Departure return
Moderator: Mark T Serbinski CA CPA
Look. The $800 make work is also under that line, and its a credit, and reduces your tax, so is the additional child tax credit.
The rule of thumb is how much money did you owe and pay IRS for the tax year. That is what CRA will look at.
Believe me, if you moved back to Canada and had to repay that credit, I'm quite sure you would include this (correctly) in your US tax paid and owed.
One cannot have it both ways.
The rule of thumb is how much money did you owe and pay IRS for the tax year. That is what CRA will look at.
Believe me, if you moved back to Canada and had to repay that credit, I'm quite sure you would include this (correctly) in your US tax paid and owed.
One cannot have it both ways.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
We are just looking at it differently.
The math flow on the 1040 when it comes to this credit or any credit under the payment section, does not exempt you from the tax owed on line 61. If this was the case you would get 100% back as a refund of all your payments and credits in this section, but this is not the case because you have to subtract line 61 (Your total tax owed) from line 71 your total payments , you are still paying the tax on line 61 thru your payments and credits, thus this amount should still be available for a foreign tax credit in Canada.
One cannot have it both ways I totally agree with you
Thanks for your time as you said before CRA will figure it out. Thanks Nelsona.
The math flow on the 1040 when it comes to this credit or any credit under the payment section, does not exempt you from the tax owed on line 61. If this was the case you would get 100% back as a refund of all your payments and credits in this section, but this is not the case because you have to subtract line 61 (Your total tax owed) from line 71 your total payments , you are still paying the tax on line 61 thru your payments and credits, thus this amount should still be available for a foreign tax credit in Canada.
One cannot have it both ways I totally agree with you
Thanks for your time as you said before CRA will figure it out. Thanks Nelsona.
Tax is paid. You know what that is.
Your only tax payments are what was withheld, what was sent installments or with your return, and minus what was refunded.
CRA will not look at it any other way.
Your only tax payments are what was withheld, what was sent installments or with your return, and minus what was refunded.
CRA will not look at it any other way.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
I’m probably confusing things.
What happens on a tax return without any of the credits?. Lets say line 61 has Tax owed is $6,000 and the only thing in the payment section is Federal income tax withheld from Forms W-2 and 1099 which is $8,000 you would get a refund of $2000, at this point would the $6000 owed and paid thru the Federal income tax withheld from Forms W-2 and 1099 be a tax credit in Canada? This is the way I have always done it in the past.
I’ve never had anything in the past returns in the payment section other than Federal income tax withheld from Forms W-2 and 1099. Maybe this is where my confusion is coming into play when you start adding the credits are they treated differently in the eyes of CRA?.
What happens on a tax return without any of the credits?. Lets say line 61 has Tax owed is $6,000 and the only thing in the payment section is Federal income tax withheld from Forms W-2 and 1099 which is $8,000 you would get a refund of $2000, at this point would the $6000 owed and paid thru the Federal income tax withheld from Forms W-2 and 1099 be a tax credit in Canada? This is the way I have always done it in the past.
I’ve never had anything in the past returns in the payment section other than Federal income tax withheld from Forms W-2 and 1099. Maybe this is where my confusion is coming into play when you start adding the credits are they treated differently in the eyes of CRA?.
[quote="nelsona"]Tax is paid. You know what that is.
[b]Your only tax payments are what was withheld, what was sent installments or with your return, and minus what was refunded.[/b]
CRA will not look at it any other way.[/quote]
See this is the thing I do have an amount under Federal income tax withheld from Forms W-2 and 1099.
My total tax was 4900 my amount withheld from Federal income tax withheld from Forms W-2 and 1099 was 9,000 giving me a refund of 4100.
Now if I would have taken this credit back in 2008 I would have increased my refund by 7,500 giving me 11600 refund check. What I'm trying to ask is if this where the case and I did take the 7500 credit would the 4900 that I paid from Federal income tax withheld from Forms W-2 and 1099 be available of the Foreign income tax credit in Canada?. If it is then when I amend with my 1040x there will be no changes that I would have to amend on my Canadian departure return that I filed last year.
[b]Your only tax payments are what was withheld, what was sent installments or with your return, and minus what was refunded.[/b]
CRA will not look at it any other way.[/quote]
See this is the thing I do have an amount under Federal income tax withheld from Forms W-2 and 1099.
My total tax was 4900 my amount withheld from Federal income tax withheld from Forms W-2 and 1099 was 9,000 giving me a refund of 4100.
Now if I would have taken this credit back in 2008 I would have increased my refund by 7,500 giving me 11600 refund check. What I'm trying to ask is if this where the case and I did take the 7500 credit would the 4900 that I paid from Federal income tax withheld from Forms W-2 and 1099 be available of the Foreign income tax credit in Canada?. If it is then when I amend with my 1040x there will be no changes that I would have to amend on my Canadian departure return that I filed last year.
Ya I realize that. That amount would not be correct, using that amount reported on W2 because this is not the tax owed it shows the tax withheld.
I did not use the 9,000 withheld on my W2 as the foreign tax credit I used the amount owed 4900 (Line 61) and got refunded the 4100 for the overpayment.
Actually I didn’t even use that amount only a portion of that due to it being a departure return, the amount I added from the 4,900 for the foreign tax credit was based on the amount of my us income report before I moved to the US and was still a resident of Canada.
So the bottom line is - would that portion of that 4,900 (In my case 2,100) that I used in figuring out my US Federal portion for my foreign tax credit in Canada be elimiated because of amending and taking the Home Buyers Credit?.
So if it did I would have to basically send CRA 2,100 of the federal (1040) portion used to calculate my credit in Canada plus interest right?.
If it does not then I would not need to amend my Canadian return right because no changes have been made to the amount of credit I reported?.
Sorry for my confusion, just trying to get this right.
Thanks
I did not use the 9,000 withheld on my W2 as the foreign tax credit I used the amount owed 4900 (Line 61) and got refunded the 4100 for the overpayment.
Actually I didn’t even use that amount only a portion of that due to it being a departure return, the amount I added from the 4,900 for the foreign tax credit was based on the amount of my us income report before I moved to the US and was still a resident of Canada.
So the bottom line is - would that portion of that 4,900 (In my case 2,100) that I used in figuring out my US Federal portion for my foreign tax credit in Canada be elimiated because of amending and taking the Home Buyers Credit?.
So if it did I would have to basically send CRA 2,100 of the federal (1040) portion used to calculate my credit in Canada plus interest right?.
If it does not then I would not need to amend my Canadian return right because no changes have been made to the amount of credit I reported?.
Sorry for my confusion, just trying to get this right.
Thanks