Foreign Tax Credit

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pooky
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Foreign Tax Credit

Post by pooky »

Please forgive my general lack of taxation understanding .

Last year, I paid $1300 USD in withholding tax for dividends received on US stocks in a non-registered account. I know my account accountant claimed this amount on my return.

Did I receive the full $1300 back (converted into CAN of course)? Or just a portion?

Thanks,

pooky
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Descartes
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Re: Foreign Tax Credit

Post by Descartes »

It is dependent on the calculation in your T2209 for federal tax which is specific to your particular situation. See: https://www.canada.ca/en/revenue-agency ... redit.html

However, whatever your accountant calculated as your credit in that form is directly deducted from your basic federal tax.

For provincial/territorial tax see: https://www.canada.ca/en/revenue-agency ... redit.html
"A dividend is a dictate of management. A capital gain is a whim of the market."
OhGreatGuru
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Re: Foreign Tax Credit

Post by OhGreatGuru »

Whether or not you would get the entire credit back depends on the ratio of your foreign income to your net income and the amount of your Basic Federal Tax. So there is no unique answer to your question :it depends on several variables.
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