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Foreign Non-business Tax Credit. Where to enter US installments paid during 2021?


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Where do I enter US tax installments paid for the 2021 tax year?

These amounts are in AADITION to the withholding amounts on tax slips.

They are taxes paid to foreign country but there does not seem to be a spot to enter them.

Unless I enter them somewhere they won't show up as part of Foreign Non-business Tax Credit.

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Installments have nothing to do with tax. They are merely deposits on what you may owe. So don't enter them. What you need to do is look at the tax payable on the US return (not the balance owing). From that deduct the foreign tax withheld on the slips and that is the amount you enter as a foreign tax paid and allocate it to the source of income for which you owe the taxes. For instance if you pay US tax on employment income allocate it to that. If its property/rental allocate it to that. Now one problem will be CRA asking about the US tax assessed. The IRS does not issue notices of assessments so there will be some back and forth with that and you may have to request an assessment from the IRS to satisfy CRA.

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