Self-employed, Canadian resident, working in Barbados

Helping a friend with his taxes.

He works as a management consultant in Barbados, but is considered a Canadian resident, for an American Company.

Spousal income zero. Pays for a nanny in Barbados (around $11,000 per year); can you also claim expenses he incurred in Barbados for his employment i.e. vehicle (business portion), etc. Would the nanny fees be a business expense (straight-up expense) or what he would pay for the purpose of work (deduction)?

Can he claim an Overseas Employment Tax Credit? Are there any other credits I can claim for him since he's overseas?

Also, does he still have to contribute to CPP? Income under $20,000 and it's showing he needs to contribute to CPP, which amounts to a net owing.


If the spousal income is zero, nanny expenses cannot be deducted. If he is filing a Barbados return, he can carry forward the amounts from that return to the Canadian one. If he is only filing in Canada you can complete the return as though employment occurred in Canada, including any deductions and tax credits that would normally be allowed... keeping in mind that self-employed individuals have different allowable deductions from employees.

Any Canadian over the age of 18 who earns over $3500 must pay premiums to the CPP, with very few exceptions.

Was this answer helpful? Yes No

No answers have been posted

More Actions

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Do you still have a question?

Ask your question to the community. Most questions get a response in about a day.

Post your question to the community