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For foreign income from USA, on the Canadian Tax Return, do I report these amounts on the Foreign tax income slip in CAD or USD dollars?

 
2 Replies

For foreign income from USA, on the Canadian Tax Return, do I report these amounts on the Foreign tax income slip in CAD or USD dollars?

If you are entering a foreign amount through the T-slip entry screen, report it in the foreign currency in which you received it. In the exchange rate box, use the exchange rate that was in effect on the day you received the income or paid the expense. If the amount was paid at various times throughout the year, use an average annual rate. To find the average exchange rate, see the Bank of Canada's Exchange Rates web page.

vjdevine
New Member

For foreign income from USA, on the Canadian Tax Return, do I report these amounts on the Foreign tax income slip in CAD or USD dollars?

I used the desktop version of Turbotax.  In the 'Easy Step' interview process, I entered the information from a US tax slip (Dividend received, tax withheld) in the Foreign slip category.  The software did not transfer this information to the appropriate line in the text form (I believe that to be line 121).  I discovered this when contacted by CRA to say I had not reported dividend income from a US source.   I believe this to be a bug (a serious one) in the Turbotax software.  When I open the return with Turbotax (it was for the 2020 tax year, although I revisited my 2021 return and found the same issue) it shows the Foreign Tax Slip information I entered, but that entry did not get to the tax forms or the return that was e-filed with CRA.    Can you comment on this?  The Easy Step process is supposed to transpose the information provided to the proper forms for submission but it appears to drop the information entered for the Foreign category of Federal Slips.  Please advise on this, I need to explain to CRA why my foreign dividends aren't in my 2020 return, even though I entered the information into Turbotax via the Easy Step process.  Thank you for your prompt response.

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