T2209: claiming the federal foreign tax credit
T2209 calculates a federal foreign tax credit on your Canadian return, subject to applicable limits. It can reduce double taxation of the same income, and the result depends on the numbers behind it.
Last reviewed by US Tax Professionals, a cross-border tax practice in Winnipeg.
What it does
T2209 lets you claim a credit on your Canadian return for foreign tax already paid on income that Canada also taxes, most commonly US federal tax withheld from wages or investment income.
Where people get it wrong
The credit is capped and calculated per country and per income category, so simply entering your total US withholding as the credit can overstate or understate what you are actually entitled to.
Timing matters
Your US return needs to be finalized, or at minimum accurately estimated, before your Canadian return is filed, since the credit depends on the actual US tax liability, not just what was withheld.
Not sure how this applies to your situation?
This guide is general information, not individualized advice. Request a consultation to see how T2209 fits your actual filing.
Who this usually applies to