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How do I claim foreign tax credits?

by TurboTax Updated 1 week ago

If you’ve been taxed by both Canada and the foreign country where you earned your foreign source income, you may be able to reduce the Canadian tax by claiming the federal foreign tax credit. Here's how to claim it in TurboTax.

After entering your foreign income and tax amounts from tax slips, if you still have any foreign tax paid (not from slips) that hasn't yet been entered:

  1. At the Tax Home screen, under Add to your return, enter foreign and select Foreign Tax Credit.
  2. At the Foreign Taxes Summary screen, select Enter More Foreign Tax Credits.
  3. Complete the Foreign Tax Credits form, using the section of the form for the applicable type of income.

TurboTax automatically applies the foreign tax credit to your tax return.

  1. Enter your foreign income and tax amounts from your tax slips.
  2. If all of the your foreign tax paid was entered from slips and you have no other foreign tax paid, you’re done.
  3. However, if you have some additional foreign tax paid (not from slips), continue as follows:
    • Select Find, enter foreign in the search bar, select Foreign Tax Credit and select Go.
  4. Complete the foreign tax credit screens.

TurboTax automatically applies the foreign tax credit to your tax return.

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