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

[michellegrenwich]

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.

[TurboTaxLise · Accepted solution]

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.

• CRA on residency status and tax obligations https://bit.ly/2HUDcM8

• CRA What income do you have to report? https://bit.ly/2X4hpcZ

• 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

[brianayurkiw]

How do I enter income (Canada and United States) in the year where my residency moved from Canada to the United States.  I have income from both countries during the year.

[Jay C]

You really did not understand or answer the question.

I have filled in a T4 which I get from my employer in Canada. I do however pay foreign income tax on this income which I want to claim on my tax return. When I go into the Foreign Income worksheet, I need to put in an income so that this amount then goes into the T2209 to allow me to claim the tax paid. This amount is then added to my T4 income and results in my income being double what it actually is. Then I have to over ride it and then I can no long e file.

Is there a way to claim the foreign tax credit without having to over ride my income. (I don't need a lecture about whether or not the income or tax paid is required to be filed thanks)

[TurboTaxHeba]

Use the "Find" engine and type in "Foreign tax Credit" instead of  "Foreign Income".

In the main screen scroll down to "Foreign other than non-business income"

Specify your income and the tax paid on this amount

Then check your income on line 10100 it should remain the same as T4 only. 

I hope this was helpful

[TurboTaxHeba]

[thatguyaltai]

I have the same problem. How have you resolved the doubling of the income?  

[TurboTaxHeba]

Please refer to the original answer:

Use Foreign Tax Credit Profile instead of Foreign Tax Income.

[K-Mtl]

Did you figure this out? It doesn't look like you got an answer for this last year.

I'm stuck on something similar. I have a foreign rental apartment, I provide a rental schedule T776 which captures the income, but in order to claim back the foreign taxes I paid, I have to enter the income again on the FTC schedule T2209 which causes double counting.

Thanks in advance, hopefully you can help me with this.

[K-Mtl]

Hello thatguyaltai. Did you figure this out?