Hi all,
I moved from Canada to the US back in 2022 and this is my first year reporting my US tax with TurboTax. After filling form 1116 on TurboTax, I only see ~50% of the paid Canadian taxes applied to the federal due. My understanding is that this should be 100%. FWIW, my foreign income was due to some vested stocks. The related income is already reported in my 2023 W2.
The way I did this was going through the foreign tax credit option. The first question was to select between foreign tax from income earned while working in another country, carryover or none. I went with the first option, as the third one results in ineligibility.
Next it moves forward to choosing the income type, which includes. among others, income re-sourced by treaty, foreign branch category income, and general category income. I understand the correct option here is foreign branch. Next goes to other gross income - Canada, where I enter the T4 amount in USD and then the taxes paid in USD, no expenses, adjustments, losses, AMT, etc. When everything is done, the federal due is only reduced by $14,695 based on $29560 of tax paid to Canada. I wonder if there is anything I'm missing in this process.
