Foreign Canadian iincome and what credits I'm allowed to claim on it

[maxim_311]

California resident

As we all know taxes can be convoluted depending on your situation. So Im gonna try and keep it simple and give bullet points

- 2012 worked in Canada for 2 months. Made $20,235. Got Canadian refund of $3,797

- On 2012 return accountant forgot to include my foreign income

-I got a Fed refund fed $3,876 and state $1,774 with total reported income of $75,572 (this is without foreign income)

-I spotted accountants omission of my foreign Canadian income ($20,235) and have him amend my return

- Now I owe Fed $1,353 and State $1,925 with total reported income $95,808

QUESTIONS

- Is this giant swing in my refund seemingly correct?

- With foreign income you're supposed to be able to deduct/write-off taxes you paid in Canada. In the #7 Credits field of my 1040X he used my Canadian refund amount of $3,797. Shouldn't he have used the total of the taxes that were deducted from my Canadian pay? ($4791 Income Tax, $961 Canadian pension plan, $370 unemployment insurance) which totals $6,122

- Owing money to the Federal gov't I can understand. But why does my state tax liability rise on money made out of the country?

 

[davew128]

California resident

As we all know taxes can be convoluted depending on your situation. So Im gonna try and keep it simple and give bullet points

- 2012 worked in Canada for 2 months. Made $20,235. Got Canadian refund of $3,797

- On 2012 return accountant forgot to include my foreign income

-I got a Fed refund fed $3,876 and state $1,774 with total reported income of $75,572 (this is without foreign income)

-I spotted accountants omission of my foreign Canadian income ($20,235) and have him amend my return

- Now I owe Fed $1,353 and State $1,925 with total reported income $95,808

QUESTIONS

- Is this giant swing in my refund seemingly correct?

- With foreign income you're supposed to be able to deduct/write-off taxes you paid in Canada. In the #7 Credits field of my 1040X he used my Canadian refund amount of $3,797. Shouldn't he have used the total of the taxes that were deducted from my Canadian pay? ($4791 Income Tax, $961 Canadian pension plan, $370 unemployment insurance) which totals $6,122

- Owing money to the Federal gov't I can understand. But why does my state tax liability rise on money made out of the country?

Your accountant should have used your actual Canadian INCOME tax, which is about $1,000. As for the state, California taxes your worldwide income just as the feds do and doesnt offer a credit.

 

[maxim_311]

Your accountant should have used your actual Canadian INCOME tax, which is about $1,000. As for the state, California taxes your worldwide income just as the feds do and doesnt offer a credit.

What do you mean my "Actual Canadian INCOME tax"? Where did you get that $1000 figure from?

 

[LdiJ]

What do you mean my "Actual Canadian INCOME tax"? Where did you get that $1000 figure from?

They withheld 4791.00 from your pay and you got a refund of 3797.00, therefore you only PAID 994.00 in actual Canadian income tax.