Canadian Tax Return - Proper Way To Declare Foreign Income

[dkearney]

Hello, I currently live in Canada and work for a US company, occasionally travelling to the US for work (I travel to the US about 6 times a year and stay for a week). I usually file a US 1040NR and a Canadian return.
The US W2 has “Wagesâ€￾ and “Social Security Wageâ€￾ amounts. On my Canadian return last year, and for the previous 5 years, I used the amount in the "Social Security Wage" box on my T1 line 104 (other employment income). I also used this amount on line 433 (Net foreign non-business income) of the Federal Foreign Tax Credits form (T2209).
However, I received a notice of reassessment from the CRA stating that the amount from “Wagesâ€￾ box should be the value in the foreign tax credit calculation, line 433 and the amount from the “Social Security Wagesâ€￾ Box should be used on T1, line 104 (other employment income). I am confused since, I thought these numbers would be the same. I used TurboTax to prepare my return and both of these fields are calculated and I cannot seem to make the modifications they are requesting. Is the CRA correct here?

Thanks.

[JGCA]

When you report foreign income of any sort you gross it up to include teh tax paid, then you can claim FTC, so from what you say you were reporting the amount Net of tax whereas it was to be grossed up CRA is correct.

[nelsona]

The wages one needs to report is gross wages, as JC said. The box CRA requested more closely fits that gross wage category (as it includes all the other deductions that IRS doesn't expect you to report on their wage line.