Foreign Tax Credits

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jmatthew
Posts: 2
Joined: Fri May 14, 2021 3:34 pm

Foreign Tax Credits

Post by jmatthew »

I’m a Canadian citizen who worked under F1, and switched to an H1B last year (Oct 1) thereby allowing me to become a Resident for Tax Purposes in the US.

I filed a returned prepared by an accountant, which included a foreign tax credit. CRA has now sent me a “review letter” for my foreign tax credit and I’d like to provide the calculation / whichever supporting forms for my US and State returns needed.
I can’t quite get the same numbers was on my Canadian return, it appears that the total income relevant to the tax credit was taken to be up to the closest pay stub (Oct 9th).

To calculate my credit, I have tried:

Total tax paid (not withheld), including Federal, State, local, SS and Medicare multiplied by 9/12 (Left Canada in Oct)
This comes up a bit short on what was on my Canadian return ($400 Cdn). Any idea if there is a different way to approach the Foreign tax credit? Would I even need this calculation for the review? Perhaps I could just send the returns/transcripts? Any thoughts would be greatly appreciated, not quite sure what I’m doing wrong.

Thanks in advance!
szbjsh
Posts: 23
Joined: Fri Nov 13, 2020 12:04 pm

Re: Foreign Tax Credits

Post by szbjsh »

Did you just receive the CRA review letter in December?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Foreign Tax Credits

Post by nelsona »

You would need to get the numbers from your accountant, obviously. That is part of the service.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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