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Level 1

Do I have to report the same income twice, as T4 income and Foreign income to claim the foreign tax credit?

I have a T4 slip for income that was also subjected to USA taxes. I am trying to claim the foreign tax credit in Turbo Tax and their appears to be a glitch. It just takes me to moving expenses. I have clicked through everything and there is no option to claim the foreign tax credit.

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Level 1

Do I have to report the same income twice, as T4 income and Foreign income to claim the foreign tax credit?

No, you will apply your T4, as provided by your employer; and as for your foreign income, it all depends on your residency status firstly, which can be determined here https://turbotax.community.intuit.ca/replies/2647682

Reporting foreign income on your Canadian tax return can get tricky, so for tax purposes, your residency status is the first thing the CRA wants to know.

  • Non-residents and deemed non-residents - report your income from Canadian sources such as the taxable part of your scholarships, fellowships, bursaries, net research grants, income from a business without a permanent establishment in Canada, and taxable capital gains from disposing of taxable Canadian property.
  • Deemed residents - report your world gross income. World income is income from all sources both inside and outside Canada.

You would apply for the FTC, which can be located by clicking on the “Find” icon at the top right of your page and typing in “Foreign Tax Credit” this will bring up the correct form to use to claim the taxes paid and ensure you are not doubled taxed.

Because of the many variables, before starting please review the links provided below for a greater understanding of your tax obligations.

  • An additional link from Allan Madan, he is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Also an International Tax Expert with further clarity https://bit.ly/2U7f4Mn

View solution in original post

1 Reply
Level 1

Do I have to report the same income twice, as T4 income and Foreign income to claim the foreign tax credit?

No, you will apply your T4, as provided by your employer; and as for your foreign income, it all depends on your residency status firstly, which can be determined here https://turbotax.community.intuit.ca/replies/2647682

Reporting foreign income on your Canadian tax return can get tricky, so for tax purposes, your residency status is the first thing the CRA wants to know.

  • Non-residents and deemed non-residents - report your income from Canadian sources such as the taxable part of your scholarships, fellowships, bursaries, net research grants, income from a business without a permanent establishment in Canada, and taxable capital gains from disposing of taxable Canadian property.
  • Deemed residents - report your world gross income. World income is income from all sources both inside and outside Canada.

You would apply for the FTC, which can be located by clicking on the “Find” icon at the top right of your page and typing in “Foreign Tax Credit” this will bring up the correct form to use to claim the taxes paid and ensure you are not doubled taxed.

Because of the many variables, before starting please review the links provided below for a greater understanding of your tax obligations.

  • An additional link from Allan Madan, he is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Also an International Tax Expert with further clarity https://bit.ly/2U7f4Mn

View solution in original post