Does Taxcycle ever allow for a deduction under section 20(11) or 20(12) of the Income Tax Act for foreign taxes paid in excess of the maximum amount permitted as a Foreign Tax Credit?
I have a situation where there is about $500 Foreign income in box 25 of a T3 slip and lets say $250 as Foreign Taxes paid in box 34. The slip is split 50/50 with a husband and wife, and the wife is not taxable. Taxcycle allows the husband (who has net income of about 90,000) a Federal Foreign Tax Credit of 29.88 and a Provincial Foreign Tax Credit of 13.01 (adding up to 42.89). The $82.11 difference between his share of the foreign tax paid, and the foreign tax credits does not show up on line 232. The spouse, has not foreign tax credit (because she is not taxable), and no deduction online 232. A deduction on line 232 would increase his spousal claim.
In the FTCSum screen of their returns (at the bottom of that sheet) the form makes reference to 20(11) and 20(12) deductions, but I can’t figure how to get any amount to ever populate in there.
Is there some type of trick or box that needs to be checked somewhere to get this line 232 deduction to work?