How do I report foreign tax refund ? Received foreign tax refund from last two years which I claimed as tax credit during those years.
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Anonymous
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How do I report foreign tax refund ? Received foreign tax refund from last two years which I claimed as tax credit during those years.

 
5 Replies
New Member

How do I report foreign tax refund ? Received foreign tax refund from last two years which I claimed as tax credit during those years.

The only real way to account for a foreign income tax refund related to prior year returns would be to go back and amend these prior returns.

Go back to your prior years and recalculate your foreign tax credit with the amounts reduced related to these foreign tax refund payments. If the only change is a change in the foreign tax credit carry forward amount, then do not file any amended tax returns but recalculation the foreign tax credit carryovers for the current tax year.

If your tax liability changes due to this reducing in available foreign tax credits in those years, then you will need to file amended tax returns and the reason for amending would be "refund of foreign taxes claimed as foreign tax credits".

Here is a link on How to Amend a Return You Already Filed

New Member

How do I report foreign tax refund ? Received foreign tax refund from last two years which I claimed as tax credit during those years.

The original Canadian taxes was $29,677  converted to US $ 23,866

In 2019, my client received a refund of $19,612 converted to US $ 14,816.

The new Canadian taxes $ 10,065.

I believe that I should converted the net taxes paid using the exchange rate on the date of the refund.

Help, this my first return of this nature

 

 

Level 7

How do I report foreign tax refund ? Received foreign tax refund from last two years which I claimed as tax credit during those years.

From your question, it sounds like you claimed the foreign taxes in the past two years to get a tax credit.  If you already CLAIMED the refunds, then you must go back and file amended returns for the past two years to show that those credits have been refunded.  Since a credit comes out of the total tax liability, you will owe the amount of the refund to the IRS. 

Returning Member

How do I report foreign tax refund ? Received foreign tax refund from last two years which I claimed as tax credit during those years.

I reported the interest earned from the foreign country, under the 1099 INT section.

in the same entry, stated my foreign tax paid.

I took the allowable foreign tax credit, with some carry over.

 

Now I revived a refund of taxes paid from the same country. Where do I report this. Under “other city/state/ tax”? 
thanks

Employee Tax Expert

How do I report foreign tax refund ? Received foreign tax refund from last two years which I claimed as tax credit during those years.

If you are referring to a foreign tax credit you have claimed in the past, you would need to amend that tax return.

 

You do not report on your 2019 taxes.

 

If you have claimed a foreign tax credit and now receive the foreign tax refund that was included in the previous calculation, you would need to amend.  I am attaching a post from DS30 for your reference.  I believe his information will help resolve your issue.  Click here: Foreign tax credit refund

 

@sivarajans

 

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