US employment income for Canadian resident

[pianob11]

Hello,

I have several quick questions regarding how to report foreign employment income (in US) for a Canadian resident.

My situation is as follows:

I was in the US for about 5 month this year on J-1 exchange visitor visa, during which period I earned some US income from a US employer. During the same time period, I maintained my employment and residential ties (home, bank accounts, investments etc.) in Canada. I am going to file my US tax return as a non-resident alien using Form 1040NR.

My questions are regarding my Canadian tax return:

(1) What should I report in Foreign Employment Income (Line 104)? "Wage" from W-2 issued by my employer (which goes to Line 8 of Form 1040NR) ? Or should it be Taxable Income from Line 41 of Form 1040NR (which comes down to "0" after deductions and exemptions)?

(2) Other employment expenses (Line 229): IF I have to use the gross amount of "wage" not the net taxable income, can I deduct the expenses such as rents paid for my temporary residence in the US? I believe these expenses qualify as "travel expenses" in the US tax law and therefore deductible from US income. But I was not sure what I can do in my Canadian tax return. It makes sense to me, in the spirit of tax law, that I deduct the expenses incurred to earn the additional income, but I don't make that decision...

(3) Federal foreign tax credit (Line 405): Finally, I wonder if I should include the Federal Tax Withheld (Box 2) and State Income Tax (Box 17) in the W-2 here. Or, should I use the final tax due (Line 52) of the Form 1040NR?

I would appreciate your insights and suggestions. Thank you!