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New Member
posted Oct 30, 2019 2:00:45 AM

Foreign sources income for non residents

I saw the FAQs for foreign income for residents but not non-residents. I lived in Canada until August and started working in Ireland in October so I am unsure if I have to claim my Irish earnings

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1 Best answer
New Member
Oct 30, 2019 2:00:47 AM

Part-year residents(incoming or leaving):

Enter the province of residence you resided on December 31, 2016 or resided before you left Canada.

Say yes to residency change and enter your date of entry or departure(whichever applies)

Enter Income from Canadian sources (excluding Part XIII income) for the part of the year when you were not a resident of Canada. (so canadian income earned before entrance or after you ceased to be a resident)

Enter Income from Foreign sources, plus Canadian sourced Part XIII income, for the part of the year when you were not a resident of Canada(Foreign income earned before entrance or after you ceased to be a resident)

By entering your foreign income it is pro-rating your non-refundable for the days you were a resident in Canada. If you do not enter this info, it assumes all your income was from Canada and gives you full credit instead of the pro-ration.

Report only your  Canadian Income on the tax return. do not report any foreign income unless received while living in Canada.

13 Replies
New Member
Oct 30, 2019 2:00:47 AM

Part-year residents(incoming or leaving):

Enter the province of residence you resided on December 31, 2016 or resided before you left Canada.

Say yes to residency change and enter your date of entry or departure(whichever applies)

Enter Income from Canadian sources (excluding Part XIII income) for the part of the year when you were not a resident of Canada. (so canadian income earned before entrance or after you ceased to be a resident)

Enter Income from Foreign sources, plus Canadian sourced Part XIII income, for the part of the year when you were not a resident of Canada(Foreign income earned before entrance or after you ceased to be a resident)

By entering your foreign income it is pro-rating your non-refundable for the days you were a resident in Canada. If you do not enter this info, it assumes all your income was from Canada and gives you full credit instead of the pro-ration.

Report only your  Canadian Income on the tax return. do not report any foreign income unless received while living in Canada.

New Member
Oct 30, 2019 2:00:48 AM

How is the tax that i paid in a foreign country accounted for? I moved with my wife from Germany on 23rd Sept. 2016. I had income in Germany until then, paid taxes too. She was on Maternity leave January 2016 till August 2016 and received tax free income till then.

New Member
Oct 30, 2019 2:00:50 AM

These last 4 sentences seem to contradict one another. "Enter Income from Foreign sources... after you ceased to be a resident" and "Report only your  Canadian Income on the tax return. do not report any foreign income unless received while living in Canada."

New Member
Oct 30, 2019 2:00:51 AM

^ my thoughts exactly this is still very confusing...

I am US citizen. I had US job earning USD pay. Company went under and i was laid off in august of last year. i got job in Canada and moved to Canada in November of last year where i began earning CAN pay/Canadian income. So why does Canada want to tax income I earned when i lived in the US when i already paid those taxes on my US tax return?

New Member
Oct 30, 2019 2:00:52 AM

Any clarity on this??

New Member
Oct 30, 2019 2:00:54 AM

If you have entered your date of departure  in the profile section, check out your warnings. There will be a warning to enter your worldwide income.

New Member
Oct 30, 2019 2:00:55 AM

Yes I saw that which I don't understand as when I called revenue Canada they said I do not need to pay tax on what I earn once I had moved out of Canada

New Member
Oct 30, 2019 2:00:57 AM

You don't. When you enter it from the warning, it does not calculate tax on the foreign income. It is used in other calculations but not taxed.

New Member
Oct 30, 2019 2:00:58 AM

Can you explain the other calculations? Because when I don't put in my earnings I am owed $75 from revenue but when I put in my earnings after leaving I owe $600

New Member
Oct 30, 2019 2:00:59 AM
New Member
Jan 7, 2020 1:44:49 PM

When I enter it from warnings it reduces the tax return, implying it is applying it towards Canadian income earned in Canada, when it is income earned after leaving Canada and becoming a non-resident.

Level 1
Jan 19, 2020 10:11:37 AM

I am looking for the same answer to the same question.

 

having read the "best solution", I interpret it as below:

 

As you (and I) departed Canada mid way through the year, there are two scenarios which could apply:

1. We earn $0 (or £0, or other currency) in the remaining portion of the Canadian tax year.

2. We earn money in the country we move to during the remaining portion of the Canadian tax year.

 

In 1., we are entitled to all of the income tax free allowance ($12k or there abouts) of earnings, so Turbo Tax will apply the entire tax free allowance to your tax return.

 

in 2. we are only entitled to part of the income tax free allowance - as we will also be entitled to part of the income tax free allowance from the second country we are now earning in. You can't have both.

Therefore your Canadian entitlement is pro-rated to the time you spend in Canada.

If it's $12k for the 12 months, then assume $1k per month... if you were there until June, you are entitled to the first $6k of whatever Canadian earnings you had to be tax free, but not the full $12k.

 

Turbo tax asks you to provide your overseas income for the part of the year you were not in Canada, in order to establish if you were in category 1. or 2..

Your tax refund/payment due should not be impacted by the figure you enter into that box.

In fact, if you only declare $1 earned over seas, it should trigger the change to show you owe tax in Canada.

Level 15
Jan 21, 2020 6:57:03 AM

@CTATDuke,

 

As we cannot see your individual tax situation, it's difficult in this forum to provide you with an answer to your question. smiddlewood's explanation is very good, however we may be able to provide you with a more detailed answer relating to your situation if you reach out to us with more details.

 

You can reach out to us via one of our social network channels, or post your own question in the Live Community.

 

Here's a direct link to ask your question in the Live Community: https://turbotax.community.intuit.ca/community/troubleshooting/discussion/02/260

 

TurboTax Twitterhttps://twitter.com/TurboTaxCanada

 

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