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.
- Residency status must be established firstly, here https://turbotax.community.intuit.ca/replies/2647682
Under the Income tab, you will find Tslips then drop down to Foreign slip.
- More here if needed from TurboTax - How do I report foreign income, foreign pension, and other foreign amounts? https://turbotax.community.intuit.ca/replies/2647976
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:
- The income tax you paid in the foreign country
- The Canadian tax payable on the foreign source of income.