Thanks for your help in advance.
I received tax refund from MI State last year (in 1099-G). The amount is not much, only $44.00.
Please advise if this amount should be reported in my Canada return?
Appreciate your time and effort.
Is US tax refund taxable in Canada?
Moderator: Mark T Serbinski CA CPA
No.
What would make you think this is taxable in Canada?
(a) Refunds are never taxable in Canada
(b) state tax refunds are taxbable on 1040 only if you itemized the previous year.
Presumably, last year you only used the actual state tax owed to compute any foreign tax credit on your Cdn return. If this is what you did, then you are fine.
<i>nelsona non grata</i>
What would make you think this is taxable in Canada?
(a) Refunds are never taxable in Canada
(b) state tax refunds are taxbable on 1040 only if you itemized the previous year.
Presumably, last year you only used the actual state tax owed to compute any foreign tax credit on your Cdn return. If this is what you did, then you are fine.
<i>nelsona non grata</i>