# Foreign Tax Credit Form



## jrsaballa (Nov 22, 2015)

When can a person start using this?

Will the savings be substantial?

How much of U.S. tax of 15% will I get back in return?


----------



## Davis (Nov 11, 2014)

The CRA website will provide definitive aswers to these questions. You shouldn't rely on tax advice provided in a discussion forum.


----------



## 0xCC (Jan 5, 2012)

Davis said:


> The CRA website will provide definitive aswers to these questions. You shouldn't rely on tax advice provided in a discussion forum.


+1 to this, there is a wealth of information on the CRA website.

If you can't find what you are looking for there you could give them a call as well.


----------



## jrsaballa (Nov 22, 2015)

Federal Foreign Tax Credits
http://www.cra-arc.gc.ca/E/pbg/tf/t2209/t2209-14e.pdf

Not applicable with U.S. because of a tax treaty.


----------



## Numbersman61 (Jan 26, 2015)

jrsaballa said:


> Federal Foreign Tax Credits
> http://www.cra-arc.gc.ca/E/pbg/tf/t2209/t2209-14e.pdf
> 
> Not applicable with U.S. because of a tax treaty.


You clearly don't understand the way Canadian taxes are calculated. Since you are a Canadian resident you report all income (including foreign income) on your Canadian tax return. You can claim a foreign tax credit for the amount of tax paid to foreign governments provided the rate paid is less than the Canadian rate. That is why you must complete the form. The Foreign income that is treaty exempt is most likely support payments from a resident of a foreign country or some social security payments. All Foreign investment income must be reported on your Canadian tax return.


----------



## Eclectic12 (Oct 20, 2010)

jrsaballa said:


> Federal Foreign Tax Credits ...
> Not applicable with U.S. because of a tax treaty.


 ... not sure where this is coming from. There seem to be lots of sources saying it does apply but that one's Canadian tax rate is important. 



> Fortunately, if you hold U.S. stocks in non-registered accounts, you get a credit for the amount withheld that you can apply against Canadian income taxes, so in most cases that leaves you square—providing your Canadian tax rate is at least 15%.


http://www.moneysense.ca/retire/should-you-treat-u-s-stocks-differently/

http://www.advisor.ca/tax/tax-news/taxation-of-foreign-investments-2375

http://canadiancouchpotato.com/2012/09/17/foreign-withholding-tax-explained/


----------



## Guban (Jul 5, 2011)

jrsaballa said:


> Federal Foreign Tax Credits
> http://www.cra-arc.gc.ca/E/pbg/tf/t2209/t2209-14e.pdf
> 
> Not applicable with U.S. because of a tax treaty.


You can't claim a FTC if the US withheld an amount in excess of the treaty amount. 

For example, US stock dividends held in a non-registered account should be taxed at 15% according to the US-Can tax treaty. If they didn't know that you are Canadian, they might have withheld 30%, which is the general withholding amount. This extra 15% is not claimable using FTCs on your Canadian tax return. To get the extra back, you'd have to go to the IRS. They have your money, and they shouldn't.


----------

