Are Refunds from Canada Taxable?

[AKTaxGuy]

I have a client that is a nonresident to US. The client is from Canada and has to file a return there. With the refund they get from Canada is it taxable on the 1040?

Thank you for yalls help.


Carter

[Kram BergGold]

Depends

If for some reason 100% of the pre filing tax payments were deducted on Schedule A then yes. Or if for some reason the pre filing payments were used to create a foreign tax credit then I think you would have to amend that return. Otherwise it would not be taxable.

[AKTaxGuy]

Thank you very much for your help.