DaveF1006
Expert Alumni

Get your taxes done using TurboTax

It depends. I think you are reading into this more deeply than you should. If you paid taxes to Canada for your unemployment, you should receive a foreign tax credit. Here are your sequence of steps to declare this income and report the foreign taxes paid. 

  1. Click on Federal 
  2. Click on Wages and Income  
  3. Click on I'll choose what I work on (if shown)
  4. Scroll down to Less Common Income>Miscellaneous Income, 1099-A, 1099C
  5. Scroll to other Reportable income>start
  6. In the second screen in the description box, you will write Canadian Unemployment and then record the amount.

Now to report your Foreign Tax credit.

  1. Go to federal>deductions and credits>estimate and other taxes paid
  2. Foreign taxes >start
  3. Start answering questions. Make sure you answer the question correctly about if this is the first year you are making the simplified  election
  4. Answer the questions in the next screens until you reach a screen that talks about income type. This will be income resourced by treaty.   
  5. Next screen is where you add the country your foreign income was earned in. 
  6. Next screen will ask you what your source income earned in that country. Here you will list the income from your unemployment.
  7. You will continue answering questions until you get to a screen that says foreign taxes paid to XXXX. Be sure not to list a date at the bottom beyond 12/31/2020 or you won't get the foreign tax credit and will show up as an error in your return

 

 

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