Do I report foreign income received after becoming a resident for an employment/work period that took place before becoming a resident?

[diaa_htuerbo123]

Hi,

I became a resident of Canada in Jan 2021 (Landing). I’ve been living abroad throughout 2020 and have been employed by a foreign company from Jan 2020 to mid-December 2020. I’ve been employed by a Canadian company starting from mid-December. I’ve received a paycheck for the last two weeks of December 2020 while living abroad before relocating to Canada in Jan 2021.

I filed my 2020 taxes as a non-resident and reported my Canadian based income of the last two weeks of December 2020. Till this point it’s straightforward.

In March 2021, I received a bonus from my previous foreign employer for my work with them from Jan 2020 to mid-December 2020.

My question is, do I have to report the payment in March 2021 from my previous foreign employer as foreign income (line 10400)? or is it considered to be a delayed payment earned from my work back in 2020 before becoming a resident of Canada? Note that I haven’t worked for a foreign entity since landing in Jan 2021

[Tweetynae25]

Yes, you should report the March 2021 payment on line 10400 of your tax return as a foreign income. It would not be considered a late payment.

As per our TurboTax article: Do You Need to Declare Income Earned From Sources Beyond Canada?

All income that you have earned from foreign and domestic sources must be declared on your personal tax return. Depending on the type of income such as capital gains, investment, or rental property you need to report it the same manner as you would if it was sourced from within Canada.

If the amounts are in a foreign currency, these must be converted to Canadian dollars. Use the Bank of Canada exchange rate that was in effect on the day when you received the income. If it was received a number of times during the year, use the average annual foreign exchange rate to convert into Canadian dollars.

Thank you for choosing TurboTax.