Hello. I am a PR and work online for entities outside of Canada and therefore, do not receive a T4. Am I correct in understanding that such an income should be claimed under "Foreign Income" on the tax form?
Also, I actually lived and worked for them in that country outside of Canada for several months last year. For that part of my income, I have already filed the tax form in that country.
In order to file a tax return here in Canada for the other part of my income (from working online for the same foreign entities) during the time when I was within Canada, in the tax form here, how can I claim that part of my entire income has already been withheld (the income tax has been paid for that)?
Thank you so much for your attention to this matter.
Firstly, you must start by determining your status when filing your tax return. As you mentioned you spend the better part of the year in other countries to earn income,( remember to always claim your income earned in CDN$), therefore, review the documents attached to help you determine how to file your taxes and claim your foreign income :Residency status when preparing a return in TurboTax
Online access to T2125 Form – HOW to get to and fill out step by step
While you are filing out all your profile questions, and you are not sure if your answer is YES or NO. Simply click on YES and it will open up more information on what you may have to declare. If not, then simply answer NO and move on to the next question.
Section - Income & work related expenses
Did you work? YES
Did you have expenses related to your employment? YES/NO
I had employment expenses – CHECK if needed
Did you have self-employment income or expenses? Note: Professional income, commission income, farming income, fishing income, and other are all kinds of self-employment income. YES
I have business expenses to claim that are related to earning self employment income. – CHECK (if needed)
Don’t forget to “Enter the province or territory where your business was located. Only enter a province or territory if you had a permanent business set up there.” (If needed)
Did you have other income that you have not yet told us about? Examples include scholastic, foreign, disability, alimony, child support, death benefits, and working income tax benefit payments. YES
I received other income not included anywhere else – CHECK (If needed)
Income Tab – “Self employment” drop down - Your Self-employment Profile for 2017
This opens the T2125 form that must be filled out correctly to ensure smooth transmission to NETFILE. (Note that if you are a non-resident you will have to print and mail in your return to the CRA) Please make sure that the top part of the form “Identification” section is filled out correctly. Business Name, province, postal code, Industry Code ect...read each section carefully to ensure you are not missing anything needed.
This forms holds all the information needed to declare any independent worker’s income earned, time and expenses while performing a duty. Click “Continue” through every section of the form.