Hi, I'm an Italian citizen, I've worked/lived in BC for 170 days in 2018 Do I have to declare my 2018 Italian incomes in both federal and provincial forms?

If I enter both Canadian (T4 forms)+Italian incomes ("foreign incomes", italian incomes earned after I came back from Canada) in the first "incomes" section the website says I'd get a refund.

If in the "Statement of world incomes" I do enter my Italian incomes again in "sources of incomes outside Canada" I get in debit as every € I've earned in Italy counts and foresaw refund-my Italian incomes = $$$ of debit.

Am I doing something wrong? Do I have to (or to not) enter my Italian incomes twice, both in the first form and in the "Statement of world incomes" form?

Tnx

Answer

This can get tricky so please take the time to review the information below to assist you with entering your foreign income sources with TurboTax.

Three things to consider: a) residency status, b) sourced country, c) type of income reported.

When you have entered your federal amounts, it will translate to the provincial. In Canada, you are not required to “file” a provincial tax return, it is all done federally. The provincial section of all tax returns is to cover whatever credits each province has, as they are all different. With the exception of Quebec residents, they must file at both levels of government.

This is most likely due to Foreign Tax Credit, which you can claim to ensure you are not doubled taxed, because we have a tax treaty with Italy. After you leave Canada, as a non-resident, you pay Canadian income tax only on your Canadian source income. However, only certain types of Canadian source income should be reported on your return while others are subject to non-resident withholding tax at source. more below from the CRA.

We want to know about your world gross income (Canadian & Foreign). It boils down to whether you get a full year or is it prorated from your date of departure. And if you need to apply for a FTC.

To access the Foreign Tax Credit form & Foreign sourced income, go to the "Find" icon at the top right corner of your screen and type in "Foreign Tax Credit" & then “ Income sources outside Canada”

How to from TurboTax FAQs:

  • How to Report Foreign Income sources in TurboTax

    Enter your foreign income, pension, and other amounts in TurboTax, even if your amounts aren’t reported on T-slips.

     

    Before you begin, know when to use Canadian or foreign currency

    Important: Amounts on a T-slip: If the amounts on your foreign income slip are reported in a foreign currency, convert them to Canadian dollars before you enter them. If the amount was paid at various times throughout the year, use an average annual exchange rate. (Visit the Bank of Canada’s website for daily exchange rates and the average annual exchange rate.)

    Important: Amounts not on a T-slip (such as on the Foreign slip step): For foreign non-business income that is not on a T-slip, including US social security, do not convert the amounts to Canadian dollars before you enter them. TurboTax converts the amounts automatically based on the exchange rate you enter.

     

    Instructions for the online and CD/download edition of TurboTax

    1. In the upper-right area of TurboTax, select Find*.

    2. In the Find window, type “T-slips.”

    3. Select T-slips from the options that appear, then select Go.

    In the online edition of TurboTax, the Income Slips step appears.

    In the CD/download edition of TurboTax, the Entering your federal T-slips step appears.

    4. Select all your slips from the list. If you have amounts not reported on a T-slip, such as foreign pension, select Foreign slip.

    5. Select Continue.

    TurboTax displays a separate entry screen for each slip you selected.

    6. Follow the instructions on each entry screen to enter the information from your slips.

    *If you can’t access the Find button, continue completing your return until the Find button becomes accessible.

     

     

    Related information


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  • Furthermore a link from Allan Madan who is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting, and income tax preparation services in the Greater Toronto Area for a better understanding https://bit.ly/2U7f4Mn

And last but not least, I will encourage you to contact our tax experts to guide you to make sure you are entering the amounts correctly, link below on how to reach them:

  • I'm using TurboTax Live Assist & Review. How do I talk to a tax expert?

    If you’re using TurboTax Live Assist & Review, you can get the phone number of one of our tax experts using a tool exclusively provided to TurboTax Live customers.

     

    How to get a phone number to reach a tax expert

    1. Sign in to your TurboTax.ca account.
    2. On the Great to see you again! step, locate the TurboTax Assist & Review return and select Continue.
    3. Select Expert Help in the upper-right area.
    4. In the panel that opens, select Connect now.
    5. On the How can we help you? step, enter a few words to describe your question in the box where it says Give us a few keywords, so we can match you with the best specialist for your specific question or problem.
    6. Select Continue.
    7. Fill out the First name, Last name, Email address and Phone number fields.
    8. Select Get the number.

    The phone number appears on the screen.

     

    Hours of operation

    You can reach us during our standard hours of operation. We also offer extended hours of operation throughout tax season.

     

    Related information


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