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I work from home for entities outside of Canada and therefore do not have a T4. How do I claim such an income? Also, part of the income has already been withheld there.

Hello. I am a PR and work online for entities outside of Canada and therefore, do not receive a T4. Am I correct in understanding that such an income should be claimed under "Foreign Income" on the tax form?

Also, I actually lived and worked for them in that country outside of Canada for several months last year. For that part of my income, I have already filed the tax form in that country.

In order to file a tax return here in Canada for the other part of my income (from working online for the same foreign entities) during the time when I was within Canada, in the tax form here, how can I claim that part of my entire income has already been withheld (the income tax has been paid for that)?

Thank you so much for your attention to this matter.

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Moderator

I work from home for entities outside of Canada and therefore do not have a T4. How do I claim such an income? Also, part of the income has already been withheld there.

Firstly, you must start by determining your status when filing your tax return. As you mentioned you spend the better part of the year in other countries to earn income,( remember to always claim your income  earned in CDN$), therefore, review the documents attached to help you determine how to file your taxes and claim your foreign income :

Residency status when preparing a return in TurboTax


How do I report foreign income, pension, and other foreign amounts?

Also because you are self-employed (PR) you may need to know how to fill out a T2125 while you were in Canada earning income that does not give you a Tslip to claim:  

Please note below is a guideline "how to",  not every question will reflect your personal situation, so if not then simply move on to the next steps.

Online access to T2125 Form – HOW to get to and fill out step by step

While you are filing out all your profile questions, and you are not sure if your answer is YES or NO. Simply click on YES and it will open up more information on what you may have to declare. If not, then simply answer NO and move on to the next question. 

Section - Income & work related expenses

Did you work? YES

Did you have expenses related to your employment? YES/NO

I had employment expenses – CHECK if needed

Did you have self-employment income or expenses? Note: Professional income, commission income, farming income, fishing income, and other are all kinds of self-employment income. YES

I have business expenses to claim that are related to earning self employment income. – CHECK (if needed)

Don’t forget to “Enter the province or territory where your business was located. Only enter a province or territory if you had a permanent business set up there.”  (If needed)

Did you have other income that you have not yet told us about? Examples include scholastic, foreign, disability, alimony, child support, death benefits, and working income tax benefit payments. YES

I received other income not included anywhere else – CHECK (If needed)

Income Tab – “Self employment” drop down - Your Self-employment Profile for 2017

This opens the T2125 form that must be filled out correctly to ensure smooth transmission to NETFILE. (Note that if you are a non-resident you will have to print and mail in your return to the CRA) Please make sure that the top part of the form “Identification” section is filled out correctly.  Business Name, province, postal code, Industry Code ect...read each section carefully to ensure you are not missing anything needed.

This forms holds all the information needed to declare any independent worker’s income earned, time and expenses while performing a duty. Click “Continue” through every section of the form.


I hope this helps.



View solution in original post

3 Replies
Highlighted
Moderator

I work from home for entities outside of Canada and therefore do not have a T4. How do I claim such an income? Also, part of the income has already been withheld there.

Firstly, you must start by determining your status when filing your tax return. As you mentioned you spend the better part of the year in other countries to earn income,( remember to always claim your income  earned in CDN$), therefore, review the documents attached to help you determine how to file your taxes and claim your foreign income :

Residency status when preparing a return in TurboTax


How do I report foreign income, pension, and other foreign amounts?

Also because you are self-employed (PR) you may need to know how to fill out a T2125 while you were in Canada earning income that does not give you a Tslip to claim:  

Please note below is a guideline "how to",  not every question will reflect your personal situation, so if not then simply move on to the next steps.

Online access to T2125 Form – HOW to get to and fill out step by step

While you are filing out all your profile questions, and you are not sure if your answer is YES or NO. Simply click on YES and it will open up more information on what you may have to declare. If not, then simply answer NO and move on to the next question. 

Section - Income & work related expenses

Did you work? YES

Did you have expenses related to your employment? YES/NO

I had employment expenses – CHECK if needed

Did you have self-employment income or expenses? Note: Professional income, commission income, farming income, fishing income, and other are all kinds of self-employment income. YES

I have business expenses to claim that are related to earning self employment income. – CHECK (if needed)

Don’t forget to “Enter the province or territory where your business was located. Only enter a province or territory if you had a permanent business set up there.”  (If needed)

Did you have other income that you have not yet told us about? Examples include scholastic, foreign, disability, alimony, child support, death benefits, and working income tax benefit payments. YES

I received other income not included anywhere else – CHECK (If needed)

Income Tab – “Self employment” drop down - Your Self-employment Profile for 2017

This opens the T2125 form that must be filled out correctly to ensure smooth transmission to NETFILE. (Note that if you are a non-resident you will have to print and mail in your return to the CRA) Please make sure that the top part of the form “Identification” section is filled out correctly.  Business Name, province, postal code, Industry Code ect...read each section carefully to ensure you are not missing anything needed.

This forms holds all the information needed to declare any independent worker’s income earned, time and expenses while performing a duty. Click “Continue” through every section of the form.


I hope this helps.



View solution in original post

Highlighted
New Member

I work from home for entities outside of Canada and therefore do not have a T4. How do I claim such an income? Also, part of the income has already been withheld there.

Dear Turbo TaxLise, thank you so much for your detailed information. I will more closely look into the matter. I truly appreciate your professional and to-the-point comments. Have a great day!
Highlighted
Moderator

I work from home for entities outside of Canada and therefore do not have a T4. How do I claim such an income? Also, part of the income has already been withheld there.

You are most welcome, it was my pleasure to assist you. Have a great day!!
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