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Level 1
posted Oct 30, 2019 10:58:41 PM

I earn employment income in Canada and in the US. My company is Canadian. The US income is part of the employment income (box-14). How do I show this in Turbo tax.

Also trying to claim a foreign tax credit. I got a W2 from my company.

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1 Replies
Level 13
Oct 30, 2019 10:58:42 PM

Firstly you must determine your residency status for taxation purposes when reporting ANY foreign sourced income to the CRA.

To enter your W2 in your Canadian Tax Return, you will go to your Income tab, Tslips then Foreign Income.

And because we have a tax treaty with the US, you will not be double taxed, therefore you would claim the FTC in Canada.

  • 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 USA. The foreign tax credit will be 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 am completely unaware of US taxation rules, but you may need to file a US return as well, to find out you can contact their TurboTax community here https://ttlc.intuit.com/community/Community/ct-p/en-us