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posted Mar 6, 2023 5:30:13 PM

How do I enter income that is simultaneously foreign (USD) and self-employed?

I am living in Canada as a Canadian citizen but work as a self-employed consultant for an American consulting firm. Thus, the income falls into both the (1) foreign and (2) self-employed categories. However, it seems like I can only enter (1) foreign *employment* income or (2) self-employed *Canadian* income. How do I enter self-employed foreign income in Turbotax? Thank you!

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Level 2
May 1, 2023 12:28:13 PM

Hi @sdrover 

 

I hope you're having a great day!

 

If you are self-employed (you bill your US employed and they pay you -while not issuing a W-2 or T4) then all the income would be reported as self-employed income on form T2125. The tricky part is that you would also need to convert your income into Canadian dollars. If you received income throughout the year, you can typically use the average yearly rate.