Why is reporting foreign benefits during the part-year I was not a Canadian resident anymore reduce my return?

[audreyguimard56]

I was living and working in Ontario since the end of 2016 until the 3rd of October 2018 and now am back in France. 

I am considered a resident for 2018, correct?

I received around 600€ of unemployment benefits from France in December 2018, which I declared when asked to declare foreign income during the part of the year I was not a Canadian resident. If I understood right, I shouldn't pay taxes on this amount, so why am I losing $250 on my return when adding it?

Do I have to deduct it somewhere else?

Thanks in advance

[TurboTaxLise]

Please go back into your tax return and double check all your entries after reading the information below. 

To ensure you are not incorrectly applying these amounts in the wrong places.

There are many factors to look at when filing your foreign income sources with the CRA

• Residency status must be established firstly, here https://turbotax.community.intuit.ca/replies/2647682

• Then for your interest & dividends, refer to this link for assistance -https://turbotax.community.intuit.ca/replies/2647976

• From the CRA – How do you report income from information slips https://bit.ly/2CDrXrz

Also, we have a tax treaty with France, so there are other credits to take into consideration to ensure you are not being double taxed. Such as the Foreign Tax Credit.

Apply for the FTC -in your "Find" icon at the top of the page, type in "Foreign Tax Credit" which will open the form needed to apply for this credit, if applicable.

You can claim a foreign tax credit for the taxes that you paid in the foreign country. The foreign tax credit is the lesser of two amounts:

• The income tax you paid on the foreign country

• The Canadian tax payable on the foreign source of income.

Then the question of the T1135 - We want to know about your World Income. It boils down to whether you get a full year or is it prorated from your date of departure. You will not be taxed twice, as mentioned before.

• T1135 from TurboTax Tips: https://turbotax.intuit.ca/tips/t1135-tax-form-foreign-income-verification-400

This is not a quick process, you need to understand all tax implications to anything being reported in Foreign sources.