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Level 1

Hi, I'm an Italian citizen, I've worked/lived in BC for 170 days in 2018 Do I have to declare my 2018 Italian incomes in both federal and provincial forms?

If I enter both Canadian (T4 forms)+Italian incomes ("foreign incomes", italian incomes earned after I came back from Canada) in the first "incomes" section the website says I'd get a refund.

If in the "Statement of world incomes" I do enter my Italian incomes again in "sources of incomes outside Canada" I get in debit as every € I've earned in Italy counts and foresaw refund-my Italian incomes = $$$ of debit.

Am I doing something wrong? Do I have to (or to not) enter my Italian incomes twice, both in the first form and in the "Statement of world incomes" form?

Tnx

1 Reply
Level 1

Hi, I'm an Italian citizen, I've worked/lived in BC for 170 days in 2018 Do I have to declare my 2018 Italian incomes in both federal and provincial forms?

This can get tricky so please take the time to review the information below to assist you with entering your foreign income sources with TurboTax.

Three things to consider: a) residency status, b) sourced country, c) type of income reported.

When you have entered your federal amounts, it will translate to the provincial. In Canada, you are not required to “file” a provincial tax return, it is all done federally. The provincial section of all tax returns is to cover whatever credits each province has, as they are all different. With the exception of Quebec residents, they must file at both levels of government.

This is most likely due to Foreign Tax Credit, which you can claim to ensure you are not doubled taxed, because we have a tax treaty with Italy. After you leave Canada, as a non-resident, you pay Canadian income tax only on your Canadian source income. However, only certain types of Canadian source income should be reported on your return while others are subject to non-resident withholding tax at source. more below from the CRA.

We want to know about your world gross income (Canadian & Foreign). It boils down to whether you get a full year or is it prorated from your date of departure. And if you need to apply for a FTC.

To access the Foreign Tax Credit form & Foreign sourced income, go to the "Find" icon at the top right corner of your screen and type in "Foreign Tax Credit" & then “ Income sources outside Canada”

How to from TurboTax FAQs:

  • Furthermore a link from Allan Madan who is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting, and income tax preparation services in the Greater Toronto Area for a better understanding https://bit.ly/2U7f4Mn

And last but not least, I will encourage you to contact our tax experts to guide you to make sure you are entering the amounts correctly, link below on how to reach them: