Report W2 to CRA - Box 10 and Box 14

[octane99]

Well, I guess many Canadians working in US had the same quesion - how to report W2 to CRA. I searched the previous posts - as far as I understand, you
are supposed to report box1 + box 12D ( 401k or other plan) to CRA. Then how about box 10 - Child Care Benefits (FSA). Shall I add that amount then deduct child care expense in my Canadian Return?

Another question is box 14 - for me is non-excludable moving expenses. I am not sure if Box 14 has been included in box 1. If not, I guess I should add box14 and report to CRA too.

Thanks for any input.

[nelsona]

I'm pretty sure the moving expenses are already in your wages.

As to the Dependant care FSA these should be added to your wages for Cdn purposes. The reason they are listed separately on your W-2, is that, while the contributions were deducted from your wages before tax, you sill have to prove on your return that you and/or your spouse met the eligibility requirements for the deduction (ie. worked or went to school)

Healthcare FSA would also need to be reported, except that these are not listed on the W-2 separately.

You do need to submit the w-2 with your Cdn return.

And for 2007, the 401(K) contributions must be added. In 2008 and beyond, you will not have to report this as income.

[octane99]

Thanks, Nelson.

I guess Box 14 is included too as it is a tax-aid ( The company reimburse this taxable reimbursement to me, plus estimated tax generated because of this reimbursement).

When you say the 401(K) contributions will not be reported as Canada income in 2008 and beyond, is there a rule change?

[nelsona]

Yes it is part of the new protocol that was signed in september.

Now your contributions will be tax-free in canada. Of course, you will not be able to exclude the Cdn tax on the withdrawal of that amount either.

[Greg]

Just curious how this situation would work with the new protocol that was signed in September, that allows contributions to 401K to be tax-free in Canada until withdrawal, what happens if you where living in Canada for another 10 - 15 years not adding to income your 401K contributions, and then cease to be a Canadian resident, file a departure return and move back to the US. Would the 10 – 15 years of not being taxed have to be reported somewhere or at sometime in the future to CRA if you never become a resident of Canada Again?

[nelsona]

Your 401(K) would be free of Cdn tax.