I have dividend income from a U.S. corporation, which I have paid US taxes on. Where do I input this information and what foreign tax credit may I be eligible for?

[ClaudiaN]

According to the CRA, dividends income earned during the year have to be reported as investment income in your tax return. Foreign dividends are taxed in Canada in the same way as the regular interest income is taxed. If received over $50 dividend income, you will need to complete T5, Statement of investment income. Please visit How to enter a T5 slip to learn how to report your foreign dividend income in TurboTax. By filling out the T5 you will need to enter the dividend amount earned in box 15 – Foreign income, and TurboTax will present this information in line 12100 of your tax return summary.

Note that foreign dividends are not eligible for the federal dividends tax credit. However, if you paid foreign taxes, you may be able to claim the foreign tax credit when you calculate your federal and provincial taxes. If you are eligible for the federal or provincial foreign tax credit, visit How do I claim foreign tax credits? to see the forms you have to fill in your tax return.

Note that tax treaties with other countries may affect whether you are eligible for this tax credits. and  Convention Between Canada and the United States of America to learn more about Canada and US tax treaties applicable to dividends.      

Please also visit Line 12100 foreign interest and dividends for more information about provincial or Federal foreign tax credits and what exchange rate, you have to use to enter foreign dividends amount in your tax return. 

If you need any further assistance please contact our phone support team or contact us directly on Facebook or Twitter.

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