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ballrw
Returning Member

Can California State Disability Insurance Tax withheld on my W2 form be included in "Foreign Tax Paid" amount for the Foreign Tax Credit calculation?

I am a Canadian resident and worked in California  for the month of Dec 2016. Received a W2 form that has a deduction called California State Disability Insurance Tax (Box 14 Other). Can I include this amount in the Foreign Tax Paid amount when doing my Foreign Tax Credit calculation?

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Accepted Solutions

Can California State Disability Insurance Tax withheld on my W2 form be included in "Foreign Tax Paid" amount for the Foreign Tax Credit calculation?

I found this information on the CRA website which indicates you can include the amounts listed below.  I am not 100% sure that the California State Disability Insurance Tax falls into that category, but I would suggest calling CRA except that right now they are very difficult to reach, perhaps due to the online services being completely unavailable since Friday afternoon.

any deduction claimed under subsections 20(11) or 20(12)

and under subsection 4(3) relating to the foreign income,

including any deduction claimed for:

• foreign union dues;

• contributions to a foreign pension plan or a social security

arrangement; and

• foreign carrying charges.

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1 Reply

Can California State Disability Insurance Tax withheld on my W2 form be included in "Foreign Tax Paid" amount for the Foreign Tax Credit calculation?

I found this information on the CRA website which indicates you can include the amounts listed below.  I am not 100% sure that the California State Disability Insurance Tax falls into that category, but I would suggest calling CRA except that right now they are very difficult to reach, perhaps due to the online services being completely unavailable since Friday afternoon.

any deduction claimed under subsections 20(11) or 20(12)

and under subsection 4(3) relating to the foreign income,

including any deduction claimed for:

• foreign union dues;

• contributions to a foreign pension plan or a social security

arrangement; and

• foreign carrying charges.