Self employed Author in Canada

[fasoola7321]

Need guidance on the following. Self-employed author making income from USA sources. Made no money in Canada except interest and dividends in a brokerage account. I am a US citizen with Canadian Permanent Resident status in Canada. Do I file or report my income to CRA even though it all came outside of Canada?

[Lvsingh_2692]

Yes you may report your income to Canada Revenue Agency (CRA) since there is tax treaty between US and Canada that reduces double taxation.  As per our TurboTax blog: Using US-Canada tax treaty : Both U.S. citizens and Canadian residents report their foreign income no matter where they file a tax return, whether in Canada or in the United States. Assuming you are reporting your tax return to CRA: as per CRA, you would fill out the form T2125 Statement of Business activities or professional activities if you're self-employed. US business income is considered foreign business income thus, you have to report your foreign business income into Canadian dollars in T2125.

With regards to your interest and dividend income earned in Canada. As per CRA: T5 Statement of Investment Income: you would report interest and dividend income earned from Canadian sources in form T5.

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