For the 2013 Tax Year in Canada I filed my forms. Upon assessment they asked to declare my US income which I will certainly do.
My confusion, after searching on this very board to little avail is what and how to do this properly.
I have read some about the following lines for my Canadian Tax submission:
104
405
and the form T2209.
The closest explanation I have found elsewhere is a post on Madan Chartered Account's site with respect to filling out both lines and the extra form.
I have filled out Lines 104 and 115.
I have put the following into my Tax Forms for the CRA:
W2 Box 1 = Line 104 CRA Form (converted from USD to CAD)
W2 Box 4+6 = Line 115 CRA Form (converted from USD to CAD) <- I don't think this is right
What do I do in the above situation?
What should I do in terms of Line 405 and T2209?
Before anyone gets after me for not searching, I have. I would have even private messaged the more knowledgeable people here but that's not enabled for the site.
Please help me as I am happy to clarify anything further.
Declaring US income on Canadians Taxes post assessment
Moderator: Mark T Serbinski CA CPA
I would like to avoid double taxation.
My income:
12 800 for the year in the USA.
Here:
Line 104 (Foreign employment income):
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... n-eng.html
oreign employment income is income earned outside Canada from a foreign employer. Report this income in Canadian dollars. Use the Bank of Canada exchange rate in effect on the day you received the income. If the amount was paid at various times in the year, you can use the average annual rate.
Note
If the amount on your United States W-2 slip has been reduced by contributions to a "401(k), 457 or 403(b) plan, US Medicare and Federal Insurance Contributions Act (FICA)." you must add these contributions to your foreign employment income on line 104 on your Canadian return. These contributions may be deductible. For more information, see line 207.
Do not reduce your foreign income by the amount of tax the foreign country withheld. Instead, you may be able to claim a foreign tax credit when you calculate your federal and provincial or territorial taxes. For more information, see line 405.
Completing your tax return
Report on line 104 your foreign employment income in Canadian dollars.
Line 405 (Federal foreign tax credit):
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... 5-eng.html
You may be able to claim this credit if you paid foreign taxes on income you received from outside Canada and reported on your Canadian tax return.
Foreign income and foreign taxes must be converted to Canadian dollars. Use the Bank of Canada exchange rate in effect on the day you received these amounts. If you received a monthly pension or multiple payments at different times during the year, use the average annual exchange rate. The average monthly rate and the daily rate are available by visiting the Bank of Canada website.
Note
If you deducted an amount on line 256 for income that is not taxable in Canada under a tax treaty, do not include that income, or any tax withheld from it, in your foreign tax credit calculation.
Completing your tax return
Complete Form T2209, Federal Foreign Tax Credits, and enter the amount from line 12 on line 405 of your Schedule 1.
Complete the tax and credit form for your province or territory of residence as the provincial or territorial credit is calculated separately.
My income:
12 800 for the year in the USA.
Here:
Line 104 (Foreign employment income):
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... n-eng.html
oreign employment income is income earned outside Canada from a foreign employer. Report this income in Canadian dollars. Use the Bank of Canada exchange rate in effect on the day you received the income. If the amount was paid at various times in the year, you can use the average annual rate.
Note
If the amount on your United States W-2 slip has been reduced by contributions to a "401(k), 457 or 403(b) plan, US Medicare and Federal Insurance Contributions Act (FICA)." you must add these contributions to your foreign employment income on line 104 on your Canadian return. These contributions may be deductible. For more information, see line 207.
Do not reduce your foreign income by the amount of tax the foreign country withheld. Instead, you may be able to claim a foreign tax credit when you calculate your federal and provincial or territorial taxes. For more information, see line 405.
Completing your tax return
Report on line 104 your foreign employment income in Canadian dollars.
Line 405 (Federal foreign tax credit):
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... 5-eng.html
You may be able to claim this credit if you paid foreign taxes on income you received from outside Canada and reported on your Canadian tax return.
Foreign income and foreign taxes must be converted to Canadian dollars. Use the Bank of Canada exchange rate in effect on the day you received these amounts. If you received a monthly pension or multiple payments at different times during the year, use the average annual exchange rate. The average monthly rate and the daily rate are available by visiting the Bank of Canada website.
Note
If you deducted an amount on line 256 for income that is not taxable in Canada under a tax treaty, do not include that income, or any tax withheld from it, in your foreign tax credit calculation.
Completing your tax return
Complete Form T2209, Federal Foreign Tax Credits, and enter the amount from line 12 on line 405 of your Schedule 1.
Complete the tax and credit form for your province or territory of residence as the provincial or territorial credit is calculated separately.
First, I assume you have filed your 1040NR, and whatever state income tax form you should have filed.
Your US wages would go on line 104,; it would include not only box 1 of W-2, but also any contributions you made to 401(k) etc. This would all be in C$.
If you did contribute to a 401(K), you will need to get form RC267 and use this to come up with your line 207 amount.
the amount you put on 104 is the income you can clim towards the foreign tax credit on line 405, using form T2209. The US taxes you can claim are (a) the taxes you paid as calculated on your 1040NR (not what was withheld), the taxes you paid to your stste of employment (not what was withheld), and the social security and medicare you paid (box 4 and 6 of w-2) all in C$.
Any leftover would go towards the similar provincial foreign tax credit.
You will need to attach your 1004NR, state return and w-2 to your ammendment.
Your US wages would go on line 104,; it would include not only box 1 of W-2, but also any contributions you made to 401(k) etc. This would all be in C$.
If you did contribute to a 401(K), you will need to get form RC267 and use this to come up with your line 207 amount.
the amount you put on 104 is the income you can clim towards the foreign tax credit on line 405, using form T2209. The US taxes you can claim are (a) the taxes you paid as calculated on your 1040NR (not what was withheld), the taxes you paid to your stste of employment (not what was withheld), and the social security and medicare you paid (box 4 and 6 of w-2) all in C$.
Any leftover would go towards the similar provincial foreign tax credit.
You will need to attach your 1004NR, state return and w-2 to your ammendment.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 