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Foreign Income Offset Limit

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Newbie

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Hi, I'm an Australian resident living and working in Canada. I'm on a 2 year working Visa since 2018 where I earned income from December 2018 - April 2019.

 

I was a resident for tax purposes in Australia for the July 2018 - June 2019 tax year.

I completed a tax return in Canada for the one month I worked during their tax year Jan 2019 - Dec 2018 (So just December 2018).

I have also paid tax in the current 2019 Canadian tax year which has yet to finish so I have not yet completed a 2019 Canadian tax return.

 

I assumed I would still need to include the 2019 tax paid from Canada although not yet returned. 

So based on that I calculated a foreign tax income of over $1000 thereby being required to calculate a foreign income offset limit.

 

Here's where I get confused.

I've followed the 'Calculating your offset limit' steps on your website, I've calculated my Taxable Income: $49,894 and my Foreign Income Tax Paid: $1,063.77 but the examples on your website don't show certain workings and where certain numbers come from or how to do it for my tax bracket ($37,001 – $90,000).

 

My questions:

Firstly, do I definitely need to include my unclaimed 2019 Canadian Tax in my Australian Tax Return? If not I would be under the $1000 foreign tax.

If I do, can you send me a more specific example for my tax bracket (using my numbers if possible) and how I would calculate my offset limit?

 

I've been struggling with this for weeks now so your help would be much appreciated.

 

Thank you,

Kal.

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ATO Certified

Taxicorn

Replies 2

I presume that you have read and followed Calculating and claiming your foreign income tax offset

 

If you provide your Australian Income & tax and your Canadian Income and tax (converted to $AU) I can tell you what it is and how I worked it out.

 

 

 

3 REPLIES 3
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Best answer

ATO Certified

Taxicorn

Replies 2

I presume that you have read and followed Calculating and claiming your foreign income tax offset

 

If you provide your Australian Income & tax and your Canadian Income and tax (converted to $AU) I can tell you what it is and how I worked it out.

 

 

 

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Newbie

Replies 0

Yes I've read that but was a bit confused about some of the workings in the example.
That would be so great if you could do that for me!



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Newbie

Replies 0

My Tax details are as follows:

AUS INCOME: $38,799.00

AUS TAX: 10,620.00

CDN INCOME: $9,110.32aud

CDN TAX: $1,063.77aud

Do my deductions and interest earned factor into this too?

AUS INTEREST: $2094.58

AUD DEDUCTIONS: $109.87

Thankyou so much for the help macfanboy!