topic How to enter canadian income from capital gains tax in Investors & landlords

How to enter canadian income from capital gains tax

lwda834222 — Wed, 11 Feb 2026 03:27:16 GMT

i paid canadian capital gains in 2022. Now i received a refund in 2023

Re: How to enter canadian income from capital gains tax

AmyC — Thu, 15 Feb 2024 19:51:48 GMT

I would keep it simple and enter it as other income with a description.

To enter:

go to personal income,
scroll to the bottom to miscellaneous, 1099-A, 1099-C income,
start,
scroll to the bottom again,
other reportable income,
start.
other taxable income, yes
enter amount and description.

Re: How to enter canadian income from capital gains tax

Mike9241 — Thu, 15 Feb 2024 20:50:56 GMT

in 2022 did you take the amount paid as a foreign tax credit on your US return.

if so

If the foreign income taxes you claimed as a credit are refunded to you or otherwise reduced, you must file an amended return on Form 1040-X reporting the reduced foreign tax credit no later than the due date (with extensions) of your return for the year in which the foreign taxes were refunded or reduced.

Topic no. 856, Foreign tax credit | Internal Revenue Service

www.irs.gov/taxtopics/tc856

Re: How to enter canadian income from capital gains tax

lwda834222 — Sun, 18 Feb 2024 14:37:49 GMT

I paid capital gains in 2022 to Canada.

95k. I then filed 1116 in USA. And got the credit. Then in 2023 Canada sent me 30k as a refund from the capital gains tax paid. I guess I didn't understand that I should amend 2022 because that refund came in 2023

Re: How to enter canadian income from capital gains tax

ThomasM125 — Mon, 19 Feb 2024 21:50:13 GMT

The refund of taxes paid is not income, so you don't report it in 2023. You need to amend the 2022 return and reduce the amount of foreign taxes paid on which you received a foreign tax credit, as mentioned by @Mike9241