Line 405 - Federal foreign tax credit

You may be able to claim this credit if you paid foreign taxes on income you received from outside Canada and reported on your Canadian tax return.

Foreign income and foreign taxes must be converted to Canadian dollars. Use the Bank of Canada exchange rate in effect on the day you received these amounts. If you received a monthly pension or multiple payments at different times during the year, use the average annual exchange rate. The average monthly rate and the daily rate are available by visiting the Bank of Canada website.

Note

If you deducted an amount on line 256 for income that is not taxable in Canada under a tax treaty, do not include that income, or any tax withheld from it, in your foreign tax credit calculation.

Completing your tax return

Complete Form T2209, Federal Foreign Tax Credits, and enter the amount from line 12 on line 405 of your Schedule 1.

Complete the tax and credit form for your province or territory of residence as the provincial or territorial credit is calculated separately.

Supporting documents

Filing electronically
Keep all your documents in case we ask to see them at a later date.

Filing a paper return
Attach your completed Form T2209, Federal Foreign Tax Credits and documents that show the foreign taxes you paid. If you paid taxes to the United States, attach your W-2 information slip, U.S. 1040 return, and any other supporting documents that apply.

Forms and publications

Related topics

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