The client earned a self-employed income in the US and reported that activity on the US tax return. While completing the FTC form in TaxCycle, the US-tax paid is carry forward as “unused business foreign tax credit” I don’t understand, why? There is a tax owing from CA employment
There is a limit on the amount of the foreign tax credit. refer to line 43300 on Schedule T2209.
Foreign Tax Credit does not reduce CPP Payable on the personal tax return.
However, look to ensure that you are not paying SE Tax on the US Return. You only pay either SE Tax or CPP, not both. Check the Social Security Treaty to determine which you pay.