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yoshiw101
New Member

Can I claim foreign social insurance/tax payments as a deduction on my foreign income? If so how do I do this on turbotax?

I started a job in Japan last year but still maintain residence in Canada. As there is a tax treaty, I need to pay Canadian income taxes on my income from Japan. I was wondering if its possible to claim my payments into the Japanese Social Insurance system as a deduction on my Canadian taxes, and if so how do I do this on Turbotax. I thought putting it into the "Deductions from foreign employment income" section on the Foreign Tax Credit section would do this but it seems to have no affect on my return. 

1 Reply

Can I claim foreign social insurance/tax payments as a deduction on my foreign income? If so how do I do this on turbotax?

Under the Income tab, you will find Tslips then drop down to Foreign slip.

Because we have a treaty with Japan, you will not be double taxed. You will then apply for a Foreign Tax Credit

  • 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.

You can claim a foreign tax credit for the taxes that you paid in the foreign country. The foreign tax credit is the lesser of two amounts:

  1. The income tax you paid in the foreign country
  2. The Canadian tax payable on the foreign source of income.