Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Mar 13, 2021 5:16:38 AM

Hi, I am self employed working for a company based in US and they pay me in USD. Should I report that under self employment income or foreign income?

0 1 745
1 Replies
Level 2
Apr 10, 2021 3:00:06 PM

You should report it under foreign income in the "Foreign" tab where USD will be converted into Canadian currency. Moreover, CRA allows you to claim foreign tax credit to reduce double taxation.

However, entering foreign amounts depends on the version of the software that you are using in TurboTax.

  • The amounts that are reported on T-slips must be converted into Canadian dollars before entering, using an average annual exchange rate. In other words, foreign currency reported on T-slips has to be converted into CDN. 
  • You do not need to convert the amounts that are not reported on T-slip, TurboTax will convert the amount according to the exchange rate entered by you.

You can find the instructions on how to enter your slip amounts based on the version of TurboTax in the following link: How do I report foreign income, foreign pension, and other foreign amounts?

For more information, please visit: Canada's Foreign Income Tax Credit