How to report Canadian Maternity Benefits

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
Posts: 1
Joined: Sat Feb 09, 2019 3:29 pm

How to report Canadian Maternity Benefits

Post by mufasa » Sat Feb 09, 2019 3:51 pm

My wife and I moved to the US on Nov 2017 on H1b and H4.
We are resident aliens in the US for tax purposes in 2018.

Filed departure returns in Canada for both of us in 2017.
My wife had maternity benefits income in 2018 that was paid out by Service Canada and we have a T4E for that purpose. She paid close to 2.7k CAD in taxes.

Question is how do we report this income in the US tax (1040). Does this go under Other Income?

I was also playing around with some online free tax tools, and when I select Non Resident and enter the T4E info on a canadian tax return, it seemed to indicate that all the tax paid in Canada is refundable. Does that seems right?
According to CRA, non-residents are liable for Part I and Part XIII and EI benefits does not seems to fall under either category. ... l#txblgtns

Should we file Canadian Tax return first and then file the US return to see how much tax we are required to pay and report accurately on foreign tax credit?

Also we have a couple of savings accounts in Canada and they didnt generate a T5 (likely because total interest was less than 50$). Do we need to add up the cents and report it on the US return?

Post Reply