Foreign tax credit, tuition credits

[khkyau]

I have both foreign tax credit and tuition credits on my Cdn return. Foreign tax credit because I moved to USA to work, and tuition credits because I was a student before that.

What I find is that I cannot use up all my foreign tax credits. In schedule 11 where the tuition credits are calculated, they make you use up the tuition credits without regard to the foreign tax credits. Also, I cannot transfer tuition credits to my wife because they force me to use them up! Now I ended up with using all my tuition credits and at the same time have unused foreign tax credits!

Is it possible to either override the Schedule 11 to claim less of the tuition credits on my return so I can transfer? I don't think foreign tax credits are transferable....

[nelsona]

If you moved to US to work, why are you reporting the US income on your Cdn return. You left, you should be filing a departure return, and not reporting any income after that date.

[khkyau]

because my wife and i moved at different times... CRA takes the position that non-residency begins when the last spouse left...

[nelsona]

That is not quite correct, but, if that is what you choose....


Thetuition tax credit issue is a known one. Yes, they end up being wasted, ans your foreign tax creits cannot be carried forward. The way tuitoon credits work has always been a crock, since it forces you to use them until your tax is zero. If you don't get a job in canada, they are always lost.


Back to my original point.
IF you left canada and now live and work in US AND your spouse visits you rather than the other way 'round, the treaty allows you to declare your self non-resident (in fact CRA would do it) on the day you moved to US.

[ceshiwuhao]

You left, you should be filing a departure return, and not reporting any income after that date.