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Peter H

Foreign Tax Credit form on UFile

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Hi, I am confused to both Federal and Provincial Tax Credit claim drop downs on UFile. 

From what I understand, one can claims a foreign tax credit (both provincial and federal) if the foreign taxes paid is over $200. 

On UFile, there are drop down for 3 options: 

1. Federal non business foreign tax credit (T2209)

2. Provincial non business foreign tax credit (TP-772)

3. Deduction under sections 20(12)

And right after selecting one of the three options, there is a blank right behind each, I'm just wondering if I should just input the total amount of foreign taxes I paid for the year (in CAD$)? But earlier on the form, it also asked to input the "amount of foreign taxes paid", so wouldn't that be inputting the same number in 3 different blanks? 

Thanks in advance for responses!

 

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Anyone can provide me step-to-step guide on filling for foreign tax credit on UFile? Or is this feature not supported with UFile? Thanks in advance for all responses! 

 

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Uflle fills in the T2209 (and appropriate provincial form) automatically from data you previously entered from T3 or T5 tax slips. When you went through the Interview Setup, you would have selected T3 and/or T5 forms to fill out for each tax slip you received.

On a T3 tax slip, there is box 25 for Foreign non-business income, and a box 34 for foreign taxes paid. If you fill out the T3 form correctly, Ufile automatically carries this information over to T2209.  Similarly for T5 tax slip, the corresponding boxes are 15 and 16 respectively. Again Ufile carries this over to the T2209, etc.

I am not sure why you are trying to fill out the forms manually?

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Hi,

T2209 - Federal Foreign Tax Credits
You may be entitled to this credit if you paid foreign tax on income that you have earned outside of Canada and reported on your Canadian tax return.

In order to claim this foreign tax credit, please follow the steps below:

1. Return to the "Left side menu on the Interview tab", select "Interview setup".

2. On the right-hand side of the screen, go to the "Investment income and expenses" group, check the boxes for "Foreign income or foreign property (T1135)" and click "Next" at the bottom of the page.

3- Return to the "Left side menu on the Interview tab" and select the topic "Foreign income & property".

4- On the screen to your right, choose the applicable type of foreign income.

Regardless of the type of foreign income, you must enter:

- the foreign income, and
- the foreign tax paid.

5 - In the field for "Limit of foreign tax credit and deduction (T2209)", you can choose one of three options in the drop-down menu to your right (if you do not choose any of the options, the program will implicitly choose the appropriate form).

The program will generate federal Form T2209 and, as applicable, Form T2036 "Provincial or Territorial Foreign Tax Credit". Furthermore, for Quebec residents, the program will complete Section A of Schedule E, "Tax Adjustments and Credits", and will generate Form TP-772-V.

For more information on foreign tax, please consult the following links:

For the CRA:

http://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-405-federal-foreign-tax-credit.html

To Revenu Québec:

http://www.revenuquebec.ca/en/citoyen/situation/sejour_hors_quebec/etranger.aspx
 

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