There are many factors to look at when filing your foreign income sources with the CRA.
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From the CRA – How do you report income from information slips? (at the bottom of that page, you will see a link for line 121, this will tell you what you need to know about interest & dividends) https://bit.ly/2CDrXrz
Also, if we have a tax treaty with the country in question, because if we do, then there are other credits to take into consideration to ensure you are not being double taxed. Such as the Foreign Tax Credit.
Then the question of the T1135 - We want to know about your World Income. It boils down to whether you get a full year or is it prorated. You will not be taxed twice, as mentioned before. This can be found under the Income & Expense tab, Other Income Sources then T1135.
T1135 from TurboTax Tips: https://turbotax.intuit.ca/tips/t1135-tax-form-foreign-income-verification-400
So as mentioned above, this is not a quick process, you need to understand all tax implications to anything being reported in Foreign sources.
Apply for the FTC -in your "Find" icon at the top of the page, type in "Foreign Tax Credit" which will open the form needed to apply for this credit, if applicable.
You can claim a foreign tax credit for the taxes that you paid in the foreign country. The foreign tax credit is the lesser of two amounts:
- The income tax you paid on the foreign country
- The Canadian tax payable on the foreign source of income.
I hope that clarifies it a bit for you. Happy Filing!
