Thousands of Canadian residents forced to pay income tax in both Canada and the United States could be about to get some respite. Learn more.
CRA has decided that all claims for foreign tax credits should come as official notices vs copies of tax returns from other countries. Effective immediately, clients will require an official Notice of Assessment from a foreign country to claim FTC. For US credits, a copy of the 1040, state return and W2s was was. One problem – the IRS and state tax agencies do not issue Notices of Assessments and some transcripts are not available till the summer. We will see how this plays out. CRA is allowing proof of payment or receipt of refund along with a copy of the return
Tuition credits can be needlessly wasted when Canadian tax residents move to the US to work or return to Canada. Planning ahead is very important as the article below states.