Canada/US income tax and foreign income tax 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.

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northmount183
Posts: 9
Joined: Fri Mar 12, 2021 12:11 am

Canada/US income tax and foreign income tax credit

Post by northmount183 »

I work on TN visa in US but family is still in Canada, so i have to declare and pay income tax on both countries. how to calculate the Canada foreign income tax credit for the income tax I paid to US. Can I off-set my Canadian income tax with the full amount of tax I paid to US? thanks for your help.
nelsona
Posts: 18363
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canada/US income tax and foreign income tax credit

Post by nelsona »

Your US tax on your wages includes the IRS tax ypu calculate on your tax1040NR return, the state tax you calculate on your state return, and the SS and Medicare (FICA) payments that were withheld from your salary.

You put that in the software and it will determine how much credit you get federally and provincially.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
northmount183
Posts: 9
Joined: Fri Mar 12, 2021 12:11 am

Re: Canada/US income tax and foreign income tax credit

Post by northmount183 »

Thanks so much for your reply.
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