Where do I enter in UFile the Foreign (U.S.) taxes paid with the U.S. 1040 return

[JimWindsor]

Where do I enter in UFile the Foreign (U.S.) taxes paid with the U.S. 1040 return?

 

[Geo123]

Hello JimWindsor,

You do not mention what the taxes paid were for.  Here is an example for a W2 (other types of income, eg. 1099-DIV, are found in the same section) :

For IRS W-2 / USA Employment Income
For Canadian reporting by a Canadian resident (note the client may also need to report to the IRS via eg. 1040-NR) 

>>Go to Right Hand Screen - Interview SetUp
  >> Investment income and expenses 
  >> Foreign income and foreign property (T1135) "-->"(blue arrow)

>>Go to Left Hand side of screen
  >>Foreign income and property
  >>Section [Foreign non-business income]
  >>Foreign employment income  “+”  < - - CLICK on “+”

*Description of the source of the foreign income [IRS W-2]
If you are entering amounts in Canadian dollars, enter 1 for the exchange rate. The average exchange rate for $US was 1.3497 in 2023. See the Bank of Canada's website (www.bankofcanada.ca) for other exchange rates.

Exchange rate to apply    [1.3497]
*Foreign employment income already entered on a T4 page
*Foreign employment income not entered on a T4 page [$amount]  < = = HERE
*Employment expenses related to the foreign employment income
*Sales expenses
*Travelling expenses
*Other foreign employment expenses – specify Description
*Amount of foreign tax paid [$amount]  < = = =IF applicable 
Eg. State  and Federal / medicare / social security – please consult with the CRA or a tax advisor

Line 40500 – Federal foreign tax credit
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-40500-federal-foreign-tax-credit.html
 

[JimWindsor]

Thanks.  The issue is not with the foreign (US income) where tax is withheld at the source and reported on a 1099 form but with the ADDITIONAL tax paid when the 1040 form is completed and filed.  I have no W-2 forms as I am retired. 

All my income is either:

IRA RMD income reported on a 1099 form with a US tax amount withheld  (which may be over or under the actual tax due when the return is finally calculated)

or other small interest amounts where no 1099 is issued and no tax withheld

or  US source interest income included on a T3 with US tax paid (Box 34) where the US tax "paid" is not the amount actually owed to IRS when everything is added in and the 1040 is finalized.

The end result is that additional US tax is paid to IRS.  This is the amount that I cannot find anywhere to include it.

Any ideas??

[Geo123]

Hello JimWindsor,

You are welcome.

I am unaware of any place in UFile to enter the additional tax paid on the IRS 1040.   Please consult with an accountant or tax advisor. The following are the only options.