Other free online tax software I have used allow me, after entering Box 15,16 (total foreign dividends, tax withheld) for a US foreign non-business income T5, to deduct the difference between:
a) the US dividend tax withheld, subtracted by
b) my Federal foreign tax credit, as a 'Foreign Tax Deduction under subsection 20(12)'
That difference should appear as a deduction in my T1 Line 232 as "Other deductions".
- T5 (Box15: 100.00 total foreign income, Box16: 15.00 foreign income deducted)
- a foreign tax credit calculated in UFile Online of say for example, $2.50
15.00 - 2.50 = 12.50 (Line 232) - "Other deductions"
I have added my UFile Online box amounts with a 'Interview > Interest, Investment income' T5 input form, but this deduction described did not occur. Instead the entire foreign tax withheld, was used for Line 1 of T2209 calculation of the foreign tax credit.
So, my questions:
In UFile Online, if my deduction was eligible, what is the workflow to enable this 'Foreign Tax Deduction under subsection 20(12)' so it appears as 'Other deductions' in my Line 232 on my T1 ? And also so T2209 Line 1 'Non-business income tax payed to a foreign country', is adjusted accordingly?
I noticed in my own UFile Online "Foreign Income Diagnostics" schedule table for my T2209, this Note(1):
"US Taxes withheld on US Interest income above 10% but lower than or equal to 15% are not eligible for 20(11) or 20(12) deductions. You may claim a 20(11) and/or 20(12) deductions for foreign taxes paid above 15%". I don't see any references to a 20(12) restriction in CRA's Folio? http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s5/f2/s5-f2-c1-eng.html
I posted the questions in the general forum here as there appeared no category in UFile Online, and this is more a UI application and content question, than a deductions question.
I'm also going to check with CRA regarding 2) next week.
Thanks to anyone who answers.