CRA Line 10400 - what to report from W2

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elgoog
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Joined: Thu Sep 19, 2019 9:40 pm

CRA Line 10400 - what to report from W2

Post by elgoog »

Hi,

I am trying to report my U.S. income on my Canadian return using https://www.canada.ca/en/revenue-agency ... ncome.html.

The page says: 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 10400 of your Canadian return. These contributions may be deductible.

1. I have already added my 401k contributions but was wondering how do I find the FICA contributions?
2. I also have additional amounts in Box 12 of the W-2: Cost of employer healthcare coverage, Employer HSA contribution and Group-term life insurance. Do I need to add these too? How do I claim a credit for them?
nelsona
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Re: CRA Line 10400 - what to report from W2

Post by nelsona »

That is your SS and Medicare. These are rarely subtracted from your wages. Remember that these are considered taxes, which you use as a credit in Canada.
Any amounts YOU paid should for medical should go on your medical expenses in Canada.
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spocket
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Location: Ontario, CANADA

Re: CRA Line 10400 - what to report from W2

Post by spocket »

Hello - I have a question on the same topic.

In the past I've filed line 10400 using the amount in BOX 5 of my W-2 since it also includes the amount contributed to a 401K.

However I've noticed that this Box 5 does NOT include an amount listed as "OTHER CAFE 125" in the "Gross Pay adjustment" explanation in the comments on the right side of the W-2 table. In that table is explained the calculation of the different "Reported W-2 Wages" for Boxes 1, 3, 5 and 16.

The amount in the "OTHER CAFE 125" matches my "health insurance" premium that are marked as "medical pre-tax" on my pay stubs.

So should the income reported to CRA be BOX 5 from the W-2, or the slightly higher amount corresponding to "GROSS PAY" in the explanations on the right side, but otherwise NOT reported in any boxes of the W-2 table?
nelsona
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Re: CRA Line 10400 - what to report from W2

Post by nelsona »

Generally, you are supposed to report GROSS pay, and then process any other amounts as deductions on your CDn return.

For example, your 401(K) contributions are reported to CRA on a special form, and your healthcare premiums would be reported as medical expenses, subject to the normal thresholds on schedule 1.

As you can see, the US system makes these deduction right of your gross pay (what they call "pre-tax"), Canada does not.
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okinawafl
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Re: CRA Line 10400 - what to report from W2

Post by okinawafl »

May I know if the 401 contribution (from employee and employer) can be claimed as RRSP deduction in Canada T1 ?
nelsona
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Re: CRA Line 10400 - what to report from W2

Post by nelsona »

It can be under some conditions. You would need to fill out form RC269 from CRA to determine how much would be deductible.
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okinawafl
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Re: CRA Line 10400 - what to report from W2

Post by okinawafl »

Just check RC269(Employee Contributions to a Foreign Pension Plan or Social Security Arrangement – Non-United States Plans or Arrangements)
but it seems like not for U.S. .
I tried to look for more information and found RC268 Employee Contributions to a United States Retirement
Plan – Cross-Border Commuters.

Is it means that for people who are not cross-border commuters, their u.s. 401k contribution would not be able used as RRSP to deduct their canadian taxable income in T1?
nelsona
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Re: CRA Line 10400 - what to report from W2

Post by nelsona »

Yes, I had noticed my error and thought I had posted the correction to 268, but I guess it didn't take. RC268 is the right form.

If you are not a commuter, then CRA presumes you are a resident working in canada (in which case you would be using the other form), or a non-resident living in US (in which case you would not be filing a Cdn return).

If you are not a commuter (ie. living in Canada but working in US) why are you even asking about this?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
okinawafl
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Re: CRA Line 10400 - what to report from W2

Post by okinawafl »

I am thinking as I still have contribution RRSP room, and I have income in canada before I leave in Sept, so I though the 401k contribution can be used to deduct my 2021 canada tax using RC268 or any other forms? Or CRA only allows 401k deduct income if the taxpayer is comunters only?
thanks.
nelsona
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Re: CRA Line 10400 - what to report from W2

Post by nelsona »

From what you have posted, the income you earned before september is Cdn sourced, therefore 401(k) contributions made during that time are not deductible in canada (the work had to be performed in US). The work perfomed after september is not reported.

You can contribute to an RRSP if your brokerage allows it, or use the OTHER form RC267, which is doe Cdn residents working in Canada for a US employer, but you might not qualify for that either (since it requires that you were PREVIOUSLY a US employee before moving to Canada, which is not your case).

So, you will need to make a true RRSP contribution in order to get that deduction for 2021.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
okinawafl
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Re: CRA Line 10400 - what to report from W2

Post by okinawafl »

thanks a lot nelsona
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