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:
- 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:
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