Report EI tax withheld in 1040?

jfgeneral · Post by **jfgeneral** » Sun Mar 01, 2009 11:35 am

I understand that I need to report my wife's EI while she was a US resident on Line 19 (Unemployment compensation) on 1040 form. Do I need to put the deducted tax of her EI ( box 24 - Non-resident tax deducted on T4E) somewhere on 1040 form? Thanks

jfgeneral · Post by **jfgeneral** » Sun Mar 01, 2009 12:32 pm

In other words, should I put the deducted tax (convert to USD of course) on Line 62 (federal tax withheld) of 1040, or should I take foreign tax credit on it on 1116 ? which category is the EI income on 1116?

nelsona · Post by **nelsona** » Sun Mar 01, 2009 2:38 pm

The tax canada witholds (or tax that you calculate on a Cdn return) is never considered 'federal tax' in the eyes of IRS. It is foreign tax, which can either be deducted on schedule A, or used as a credit againt the federal tax you owe on foreign income, calculated on form 1116.

In either case, the gross EI, before tax, is reported as income.