Reporting US income for Canada return

[GTAresident]

Till 2008, contributions from US income to 401K were not allowed on Canada return for deductions and had to be added to income. I read from previous posts that now from 2009 any 401 contributions made from US income while resident of Canada -for part year resident period due to family there- is considered equivalent of RRSP contribution. Question is

1) Do you show this amount on same line as RRSP on Canada return?
2) Which CRA document shows details about recent treaty revision on 401K/RRSP contributions which came in effect from 2009?

[nelsona]

There is a form to fill out for CRA. I have reportedon this here before.



http://www.cra-arc.gc.ca/E/pbg/tf/rc268/README.html

[GTAresident]

Hello Nelsona,
I am familiar with the link but was confused by wording "commuter". Is the same form applicable for part year Canadian resident as well?

[nelsona]

If you were working in the US and still living in Canada (which I believe is what you claim you were doing the first part of 2009) then you are a commuter.

Otherwise you are a non-resident, not reporting any of this (like for the second part of the year for you, when you left canada).

[GTAresident]

Basically it amounts to be same number as Box 1 on W2 since for Canada you add 401K contribution to Box 1 and then subtract same amount on line 207.

Of course, above is on assumption that there is room in RRSP.

[nelsona]

For part-year, since you only eported US income up to departure date, you can only claim 401(K) contribs made before departure date.

That would be on your paystub.