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New Member
posted Aug 6, 2021 3:44:06 PM

I am a self employed person w international clients. How do I go about reporting this income? Does that go into self employed income or foreign income?

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1 Replies
Level 2
Aug 10, 2021 3:10:17 PM

Thank you for your question!

 

As per CRA:

Note: Line 10400 was line 104 before tax year 2019.

Foreign employment income is income earned outside Canada from a foreign employer. Report this income in Canadian dollars. Use the Bank of Canada exchange rate in effect on the day you received the income. If the amount was paid at various times in the year, you can use the average annual rate.

Note

If the amount on your United States W-2 slip has been reduced by contributions to a 401(k), 457, or 403(b) plan, US Medicare and Federal Insurance Contributions Act (FICA), you must add these contributions to your foreign employment income on line 10400 of your Canadian return. These contributions may be deductible. See Line 20700.

Do not reduce your foreign income by the amount of tax the foreign country withheld. Instead, you may be able to claim a foreign tax credit when you calculate your federal and provincial or territorial taxes. See line 40500.

Completing your tax return

Report on line 10400 your foreign employment income in Canadian dollars.

 

Please visit the CRA site for more information.

 

Thank you, for further information please contact us by phone or via private message on Twitter or Facebook.