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alj
Level 2

Foreign tax credit on my Massachusetts state return for taxes paid to Canada on dividends.

 One of the countries I have paid foreign taxes to on dividends earned is Canada.  Massachusetts allows a foreign tax credit only from taxes paid in Canada.  How do I get turbo tax to make this adjustment on my Massachusetts state return?  I believe I indicated 'various' for countries to which I paid taxes when I was doing my federal return. It seems there may have been a way to designate which countries you paid foreign tax to but I don't remember and can't seem to get back there.

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ErnieS0
Expert Alumni

Foreign tax credit on my Massachusetts state return for taxes paid to Canada on dividends.

You can claim a credit for tax paid to Canada in the Massachusetts section.

  1. Continue until you see Pay Tax to Another State?
  2. On Other Jurisdiction, use the last option in the drop down: The Dominion of Canada
  3. Follow the rest of the screens

Massachusetts allows a credit for tax paid to:

  • Other states in the U.S., including payments made under the Rhode Island Temporary Disability Insurance Act or other similar programs that meet all requirements and are essentially an income tax
  • Any territory or dependency of the U.S., including:  
    • Puerto Rico
    • The Virgin Islands
    • Guam
    • The District of Columbia
  • The Dominion of Canada or any of its provinces (You must first reduce the taxes you paid by the amount allowed as a federal Foreign Tax Credit on U.S. Form 1116, claimed or not.)
  • New Hampshire Business Profits Tax (considered an income tax)
  • District of Columbia Unincorporated Business Franchise Tax (UBT)

Learn about the income tax paid to another jurisdiction credit

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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1 Reply
ErnieS0
Expert Alumni

Foreign tax credit on my Massachusetts state return for taxes paid to Canada on dividends.

You can claim a credit for tax paid to Canada in the Massachusetts section.

  1. Continue until you see Pay Tax to Another State?
  2. On Other Jurisdiction, use the last option in the drop down: The Dominion of Canada
  3. Follow the rest of the screens

Massachusetts allows a credit for tax paid to:

  • Other states in the U.S., including payments made under the Rhode Island Temporary Disability Insurance Act or other similar programs that meet all requirements and are essentially an income tax
  • Any territory or dependency of the U.S., including:  
    • Puerto Rico
    • The Virgin Islands
    • Guam
    • The District of Columbia
  • The Dominion of Canada or any of its provinces (You must first reduce the taxes you paid by the amount allowed as a federal Foreign Tax Credit on U.S. Form 1116, claimed or not.)
  • New Hampshire Business Profits Tax (considered an income tax)
  • District of Columbia Unincorporated Business Franchise Tax (UBT)

Learn about the income tax paid to another jurisdiction credit

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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