[Julia]

Hi
I have clients with T3 slips and have amounts in Box 34 (foreign non-business income tax paid)and when I enter this amounts Profile is asking me for a name of foreign country. I can't find this information on the T3slip and Profile wont calculate the federal divident tax credit if I dont indicate a country. Is there a code I am missing with this information or should I ask the client. I am sure most clients wont know this information. I would appreciate your help.
Thanks
Julia

[Peter@Intuit]

Julia, on 07 March 2011 - 09:46 AM, said:

Hi
I have clients with T3 slips and have amounts in Box 34 (foreign non-business income tax paid)and when I enter this amounts Profile is asking me for a name of foreign country. I can't find this information on the T3slip and Profile wont calculate the federal divident tax credit if I dont indicate a country. Is there a code I am missing with this information or should I ask the client. I am sure most clients wont know this information. I would appreciate your help.
Thanks
Julia

Hi Julia,

You are not going to get a federal dividend tax credit from foreign income. You might be eligible for deductions under 20(11) and 20(12), as well as a foreign tax credit ("FTC"), which Profile calculates on the FTC schedule and gets displayed on the T2209 (federal FTC) and possibly the T2036 (provincial FTC).

The reason a country name is requested is that foreign tax credits are calculated on a country-by-country basis, and the country needs to be reported on the T2209 and T2036.

If the country isn't disclosed on the T3 Slip, you should probably ask either the client or issuer of the slip which country the income was earned from.

Good luck!

Peter