I'm a US citizen living in Canada and filing canada tax as a canadian resident. A portion of my T4 is foreign income from US. How should I report this T4 income to claim foreign tax credit? I want to make sure 1) The right amount is reported as foreign employment income; 2) this foreign employment income is not double counted.
T4 slips are issued when there have been deductions from the employee’s pay that go towards the Canadian Pension Plan (CPP) (or the Quebec Pension Plan QPP), Employment Insurance (IE), Income taxes or Provincial Parental Insurance Plan. So the income on the T4 is considered to be Canadian income, even if it was paid by a foreign company.
Is it possible that your employer also has a US slip that has your US income on it?
Thank you for your reply. I doubled checked; my T4 slip includes RSU, and a portion of it was US sourced because I recently moved from US to Canada and is considered US income.
How should this be reported? Does Turbotax give a way to mark a portion of T4 income as foreign income?
The following boxes have numbers filled out: 14, 16, 16A, 24, 18, 22, 26, 38, 40
If the amounts on your foreign income slip are reported in a foreign currency, convert them to Canadian dollars before entering them. If the amount was paid at various times throughout the year, use an average annual exchange rate.
For foreign nonbusiness income that isn't on a T-slip (including US Social Insurance), do not convert the amounts to Canadian dollars before entering them. TurboTax converts the amounts automatically based on the exchange rate you enter.
Please follow our TurboTax FAQ for guidance: How do I report foreign income, pension, and other foreign amounts?
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