My daughter in travelling around the world and has stopped to work in Australia for a few months.

[jdlewis7]

According to the CRA she is a factual resident of Canada.  I have entered her foreign income into Turbo Tax and included the exchange rate and number of days she was out of the country in 2014.  In the Review section of Turbo Tax  it is coming up with an error stating that I need to enter the number of days in the qualifying period and then it takes me to her T4 for her Canadian employment.  I can see a box for number of days, but that has nothing to do with her Canadian employment.  How can I fix this error and continue?

[TaxHelp5 · Accepted solution]

A factual resident will claim the same as any other resident of Canada, meaning you will enter their province of residence as the province where they maintain their residential ties (like where they will move back to, where their bank is, drivers license is, etc).

Now when I read your comment it sounds like you are trying to claim the overseas employment tax credit. Unless your daughter received a form T626 that says they are eligible to claim the credit you need to go back thru that section of the interview and delete that information. You need to walk thru those steps and remove the data manually.

[jdlewis7]

Where does her foreign income get input?

[TaxHelp5]

You can claim the income on the foreign income slip. You can convert it to Canadian before you enter it or enter the foreign amount and enter the exchange rate. If tax was deducted on the income you will enter the tax amount on the same slip. Be sure to add the name of the foreign country on the Source country field. A foreign tax credit will calculate automatically if applicable based off the entries on the foreign slip.

[jdlewis7]

If I use the foreign income slip it looks for "days in the country" on her Canadian T4 which has nothing to do with this, otherwise it creates an error to be fixed in TurboTax and we are back with my original question.

[TaxHelp5]

Lets make sure you are not entering the data on the T626 Overseas Employment Tax Credit form. If you are you will need to delete all the info you entered in that section.
This is where you need to enter the income:
 Click on INCOME & EXPENSES in the left hand menu.
Then click on T-slip
Then on the step: Entering your federal T-slips check off Foreign Slip - Income from outside of Canada
Click continue till you get to: Foreign slip
On the foreign slip you will enter the employment income in the field for Foreign employment income
If tax was deducted enter that in Foreign tax paid
If you have already converted the income to CDN, leave the exchange rate as 1 (or enter the foreign exchange rate)
Enter the source country: if this is our desktop product you will enter Country 2
You don't need to enter anything in any other field. The fields about the T626 should be left blank.

[jdlewis7]

That worked.  Thank you for your help.