? US child tax credit - Canada Taxation


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Topaz7   
Member since: Feb 05
Posts: 2
Location:

Post ID: #PID Posted on: 05-04-06 17:03:18

I work in the US & towards 2005 tax returns, I am supposed to get US$ 660 from US federal. But since I have 2 kids, I got an additional US$ 2000 from US federal ($1000 child tax credit for one kid)

Based on my reported US income, I would be paying CA$ 2155 to Canada.
But, now the Canadian tax consultant that I am working with, is saying that, on top of paying $2155, I have to REMIT the tax credit (US$ 2000 in total) that I received from US federal to CCRA.

That makes it to: CA$ 2155 + (US$ 2000 (x 1.2116)) = CA$ 4578

I am not aware of this, that It sounds so outrageous. (My thought is that, the refund I received from the US, would be added towards the gross income when reporting to CCRA, that enables me to pay 2155 + little more)

Could someone please clarify the above.........OR provide professional help to prepare my 2005 Canadian taxes (on US income)?
(I am willing to pay any charges). Thanks.





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