I am a dual US/Canadian citizen living in Canada with my PR spouse. My husband made all of our money in Alaska last year and we were there for most of the year.
I am filling out 2 T1 forms for Canada. Then I am filling out a US 1040.
I am then going back and claiming a foreign tax credit on my husband's T1.
I cannot figure out how to claim a foreign tax credit on the US1040, however, as even though we are paying taxes in Canada on our US income, we have no Canadian income this year.
Therefore a Form 1116 does not fit our situation.
Is there a way to claim this as a foreign tax credit on our 1040, or does this mean we do not get a credit in the US for the taxes we paid Canada on our US income this year?
Anyone?
claim foreign tax credit on US return w/ no foreign income
Moderator: Mark T Serbinski CA CPA
That is correct. It is on your Cdn return that you will clim credit for the US tax paid.
What you can do is take any Cdn taxes you actaully paid in the 2010 calendar year and use this as a deduction on schedule A.
What you can do is take any Cdn taxes you actaully paid in the 2010 calendar year and use this as a deduction on schedule A.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best