Paying Canadian tax while working in the US

QUESTION:

What taxes can you enter as a Foreign Tax Payment?
Are all taxes allowed, like Federal, state, property tax, sales taxes, Licenses, etcetera.

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david ingram replies:

You can only put:

* US Federal Income Taxes

* FICA (SOCIAL SECURITY TAXES)

* MEDICARE

* STATE INCOME TAXES

on line 431 of the Canadian return to claim as a foreign tax credit.

Sales tax, property tax, licences, etc., do NOT qualify for the foreign tax credit although they may be deductible as part of a business schedule or rental schedule or employment expense schedule.

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