Reporting Foreign Tax Offset in an individual tax return

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Bruce4Tax · Answer

Per the tax return instructions for individuals, the amount of claimable FITO (obtained by working out the FITO limit) must be reported under label 20 -OQ: Certain software like Handitax provides an additional schedule to work out the claimable offset. This schedule allows us to show the amount of actual foreign tax paid and the offset limit which can then be compared against each other to arrive at the claimable offset. Which you only need to do if you want to claim credit for more than $ 1000.So is it a must to show both the actual foreign tax paid and the offset limit or can I simply include the claimable offset under 20 O without using the additional schedule? The schedule is a WP to show how the FTC was calculated - does not lodge. ITR only shows claim amount. If I follow that approach will be reporting only the claimable offset but not the actual foreign tax paid. Which is how it is done - equally we only see a few FTC amounts over $ 1000. e.g. Canada pensions

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