If you're not seeing a foreign tax credit calculation for a specific country, here's what you need to know:
Minimum thresholds:
- Your total foreign income from a country must be at least $0.50
- Your total foreign tax paid to that country must also be at least $0.50
Why these thresholds exist:
- They prevent your return from being rejected by the CRA's NETFILE system
- This ensures smooth processing of your tax return
If you haven't met these thresholds:
- Wealthsimple Tax won't calculate a foreign tax credit for that country
- This is to comply with CRA requirements
What to do:
- Review your foreign income entries:
- Navigate to the relevant income sections in your profile (e.g., Employment Income, Investment Income)
- Verify that you've reported all foreign income correctly
- Check your foreign tax paid entries:
- Ensure you've entered all foreign taxes paid in the appropriate sections
- Confirm that the amount is at least $0.50
- If both amounts are below $0.50:
- Unfortunately, you can't claim a foreign tax credit through NETFILE using Wealthsimple Tax. This is due to CRA requirements, not a limitation of Wealthsimple Tax
- Instead, you can print and mail your tax return
Remember: Even small amounts of foreign income must be reported on your tax return, even if they don't result in a foreign tax credit.
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