Foreign income - unemployment benefits

[viktormr]

Hi. Just wondering how to add a foreign "EI benefits". Paid by government, there is no tax on the income. Every time I add it as a foreign income with no tax being paid, TurboTax adds a tax on it. 

Thanks.

[TurboTaxSusan]

Are you using TurboTax CD/Download or TurboTax Online?

[viktormr]

Online

[TurboTaxSusan]

You may want to double check the tax treaty that Canada has with that foreign country, as usually only certain pensions and certain investment income is exempt from taxes in Canada. 

[viktormr]

I understand it as an income taxable only (in this case) in Austria. Does it mean it's not mandatory to fill it in Turbotax?

 

Government Service

1. a ) Remuneration paid by or out of the public funds of a Contracting State or a political subdivision or a local authority thereof to any individual in respect of services rendered to that State or subdivision or local authority thereof shall be taxable only in that State.

• b) However, such remuneration shall be taxable only in the Contracting State of which the recipient is a resident if the services are rendered in that State and the recipient did not become a resident of that State solely for the purpose of performing the services.

2. The provisions of paragraph (1) shall not apply to remuneration in respect of services rendered in connection with any trade or business carried on by one of the Contracting States or a political subdivision or a local authority thereof.

[TurboTaxSusan]

I would recommend contacting the Canada Revenue Agency (CRA) and confirm it with them how you need to report this income.

If you are in Canada or the United States, you can call the CRA at 1-800-959-8281. If you are elsewhere, you can call 613-940-8495. This page has more ways to contact the CRA: Contact the Canada Revenue Agency