Federal Tax Credit

[tomcimonetti]

 I have foreign taxes paid to the USA on dividends and other foreign income. I input the foreign taxes paid in the income section and Turbotax correctly totals the Foreign tax paid at $2408 CAD. This triggers the foreign tax credit worksheet Form T2209 that correctly reports the total foreign tax paid at $2408 CAD. However this worksheet states "If the amount of Federal foreign non-business income tax credit you are entitled to deduct is equal to the Foreign non-business tax you paid, your Provincial or Territorial foreign tax credit would be zero". Unfortunately the CRA does not recognize these foreign taxes paid and disallows this credit on the Canadian Federal Return. Line 5 of the T2036 E shows the non-business income tax credit allowed correctly as $0. However Turbotax incorrectly list the $2408 CAD foreign tax credit as allowed on line 40500 of Part C form even though CRA does not allow this credit. I tried to edit line 40500 of part C from $2408 CAD to $0 but the software does not allow me to edit this field. Please help.

[TurboTaxAniqua]

In TurboTax Canada, Line 40500 is an auto-calculated field. You cannot edit it directly on the final return because the software generates this number based on the data you entered in the "Foreign Income" or "T-Slip" sections.

Try these steps instead:

Search for "Foreign Tax Credit".

Go to the Foreign Tax Credit Worksheet (FTC).

Look for the specific entry for the USA and manually change the "Foreign Tax Paid" to $0 or change the "Net Foreign Income" to $0.

This will force the calculation engine to update Line 40500 to $0 without requiring an "override" (which would prevent Netfiling).

We suggest that you contact our Product Support team. They have access to tools we don't have here in Community, like screenshare, and can help resolve this issue for you.