CPA and others, I need your help!
I already filed my mom's tax return, but I think I may have overpaid her taxes! Here's what happened:
My mom received an IRA distribution from Canada in the amount of $10,000+ Canadian Dollars. Of this amount, $2,750 Canadian Dollars were withheld for 'non-resident taxes' which my mom had to pay because we all live here in the US now.
How should one account for this income on a tax return? I converted it to US dollars using the December 31, 2003 exchange rate. The problem I see now is that I had to pay a lot of money for her state taxes, and I realize all of that extra tax is because of this distribution. But the money was not earned in North Carolina!!! Isn't there someway around this? The way it stands now, my mom paid taxes in Canada, to the US Federal government, and to the state of North Carolina. There should be some way to get that money back from the state?
I already filed my mom's tax return, but I think I may have overpaid her taxes! Here's what happened:
My mom received an IRA distribution from Canada in the amount of $10,000+ Canadian Dollars. Of this amount, $2,750 Canadian Dollars were withheld for 'non-resident taxes' which my mom had to pay because we all live here in the US now.
How should one account for this income on a tax return? I converted it to US dollars using the December 31, 2003 exchange rate. The problem I see now is that I had to pay a lot of money for her state taxes, and I realize all of that extra tax is because of this distribution. But the money was not earned in North Carolina!!! Isn't there someway around this? The way it stands now, my mom paid taxes in Canada, to the US Federal government, and to the state of North Carolina. There should be some way to get that money back from the state?