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Taxes on foreign dividends for U.S. investors with low income


Mephistopheles
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I'm an American, and I have received some dividends this year from Glacier Media, a Canadian company, for which taxes were withheld. I know that I can claim a foreign tax credit so I don't have to pay U.S. dividend taxes. But I also happen to be a student, and have been able to bring my income below the threshold for paying any taxes in the U.S. So I'm wondering if it's possible to claim a refund from the Canadian government for the taxes, since my U.S. income/dividends aren't being taxed at all. If so, how can I go about doing that? I tried searching for this information but can't find anything useful.

 

Thanks, much appreciated.

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For your US Return, I can't speak to a Canadian return:

 

My advice would be to still file a Federal tax return (Form 1040) claiming the foreign tax credit (FTC) utilizing Form 1116. You can also claim the credit without preparing the Form 1116 (by making an election with your return) if you meet the requirements, however, making just the election would not allow you to carry forward any unused FTC to future years).

 

Purchase some basic tax software such as Turbo Tax and it will walk you through the process.

 

You can carry-back the unused FTC 1 year and forward 10.

 

http://www.irs.gov/uac/Form-1116,-Foreign-Tax-Credit

 

 

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Thanks for the tips guys.

 

For your US Return, I can't speak to a Canadian return:

 

My advice would be to still file a Federal tax return (Form 1040) claiming the foreign tax credit (FTC) utilizing Form 1116. You can also claim the credit without preparing the Form 1116 (by making an election with your return) if you meet the requirements, however, making just the election would not allow you to carry forward any unused FTC to future years).

 

Purchase some basic tax software such as Turbo Tax and it will walk you through the process.

 

You can carry-back the unused FTC 1 year and forward 10.

 

http://www.irs.gov/uac/Form-1116,-Foreign-Tax-Credit

 

 

 

I will look into this, thanks!

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