randy14
Returning Member

Does TurboTax allow me to put income declared on Line 104 (T4 slips) onto a T2209 so I can claim a foreign tax credit?

 

Investors and rental owners

Yes. You'll enter any foreign employment income in the foreign income section. Use the Find button to search/select Foreign Tax Credit to claim the credits.

randy14
Returning Member

Investors and rental owners

That is not what I need. In my case the "foreign income" is on a T4 because it is paid by a Canadian corporation. I need to be able to enter a portion of my T4 income on the T2209 without having it added into my income again as "other income".

 

The CRA says I can do this but they told me some common tax software does not allow this because the software has design flaws. Does this design flaw exist in TurboTax?

Investors and rental owners

Which box on your T4 has the foreign income listed?

randy14
Returning Member

Investors and rental owners

Some context: the OECD rules require that employees doing work in a foreign jurisdiction pay tax on the portion of the salary accrued while in that  foreign jurisdiction even though the salary is paid in Canada.

 

OTOH: there is no box for foreign income on a T4 because it is not foreign income. It is Canadian income subject to foreign taxes and it is eligible for the foreign tax credit. The question is whether TurboTax will allow me to enter the information in the way that CRA says I need to do.

Investors and rental owners

Thank you for the context.

I will follow up with our product team to confirm the correct procedure.

In the meantime, you can run a test with your details in TurboTax Online. If you use the Free version, you'll be able to view the PDF copy of the forms without having to pay or file your return.

Get started here: https://turbotax.intuit.ca/personal-tax-software/free-online.jsp

randy14
Returning Member

Investors and rental owners

The online version does not seem to allow me to claim what i need to claim since the T4 has no box explicitly labelled as foreign income. What I need is a way to declare that X dollars from the income reported in Box 14 of the T4 issued XYZ Corp was subject to foreign tax.

 

If there is a way to do this I need to know. Keep in mind that the CRA told me this was a known deficiency in popular tax programs.