Hi,
I have W2 income in the US and rental income in Canada.
I am a Canadian citizen, but am considered a resident alien in the US for tax purposes.
I've been declaring all of my income to the IRS and to the CRA (the Canadian version of the IRS).
I've paid taxes to the US. I've also paid taxes to the CRA, the difference between what I paid the IRS and what would have been owed to the CRA (because of their generally higher tax rates). For example, if I owed the IRS $1000, and the CRA $1200, then I would pay the IRS $1000 and the CRA $200 (after all currency conversions).
Can I claim the $200 as a foreign tax credit on Form 1116 for past years? If so how would I do that in TurboTax?
Can I claim the $200 as a foreign tax credit on Form 1116 for the current year? (I would have to figure out how much tax would be on the rental income in Canada as well)
If anyone could answer these questions, or provide some guidancde, that would be greatly appreciated!
