W2 - to CRA

TN Holder · Post by **TN Holder** » Mon Jan 23, 2006 3:14 pm

Hi,

Which line or box of W2 should be reported to CRA for US income?

thanks

nelsona · Post by **nelsona** » Mon Jan 23, 2006 3:22 pm

Your income, according to CRA rules includes your WAGES, PLUS any 401(K) contributions you made, PLUS any FICA contributions your made.

So, Box 1 + any amount in box 12 relating to 401(k).

CORRECTION: Most do NOT include FICA.

All converted to USD of course, at the yearly rate.

Greg · Post by **Greg** » Mon Jan 23, 2006 4:59 pm

Nelson - What about box 14 (Other) such as Group Health insurance paid.

nelsona · Post by **nelsona** » Mon Jan 23, 2006 5:13 pm

CRA has not published specific guidance on these. Stick to what they have asked for.

Since you will be sending a copy of both your 1040 and your W-2, they can come back for more if they wish.

nelsona · Post by **nelsona** » Tue Jan 24, 2006 9:34 am

CORRECTED:

Just to clear up any confusion as to what is in box 1.

Cdns are used to T4's which include ALL income, and then having various dedcutions in other boxes.

On W-2's however, for "Pre-tax" deductions, ie. those taken off at source and considered by IRS to be tax deductions, these arer NOT reported in Box 1. These would include 401(k) and other pension contributions made by the employee as well as medical premiums (medical, dental, vision, Health care FSAs, etc).

Then again, if you live in canada (otherwise you wouldn't be reporting W-2 income) you probably should be opting out of any expensive healthcare package at work. And you probably shouldn't be contributing to a 401(k) either.

nelsona · Post by **nelsona** » Wed Feb 01, 2006 10:18 pm

It appears that not all W-2s have excluded FICA from box 1.

therefore you will have to determine this on your own.

TN Holder · Post by **TN Holder** » Thu Feb 02, 2006 3:10 pm

Nelson , what is FICA?

Thanks

Carson · Post by **Carson** » Thu Feb 02, 2006 4:21 pm

TN Holder wrote:Nelson , what is FICA?

Thanks

FICA includes Social Security and Medicare taxes.

Sat Feb 04, 2006 4:37 pm

Your income, according to CRA rules includes your WAGES, PLUS any 401(K) contributions you made, PLUS any FICA contributions your made.

So, Box 1 + box 4 + box 6 + any amount in box 12 relating to 401(k).

All converted to USD of course, at the yearly rate.

Just to clear up any confusion, Box 1 on form W2 is Gross income including any social security deductions, but less pension contributions noted in Box 12 (D).

You therefore only need to add back the 401(k) contribution, and not FICA.

nelsona · Post by **nelsona** » Sun Feb 05, 2006 8:18 am

Yeah, I don't know why I thought these weren't included. I guess my medical premiums have gotten so high that they almost equate to FICA

Mon Feb 06, 2006 8:41 am

Unfortunately, there is no deduction for social security taxes on the 1040 or anywhere else, unlike the tax credit available for CPP and EI on Canadian returns.

nelsona · Post by **nelsona** » Mon Feb 06, 2006 2:34 pm

That is true for employees.

Of course, *some* of the self-employment taxes that one calculates (which are in effect the employer's half of FICA) is deductible on page 1 but that doen'rt apply to W-2 income.

TN Holder · Post by **TN Holder** » Mon Feb 06, 2006 3:56 pm

So, for tax paid to US we should sum up box 2 (federal) and Box 17 (state)?

The result could be used for tax credit. (I mean "The Result multiply proportion of days resident Canada multiply Bank of Canada exchange rate")

Also, I used my move expens as deduction to IRS, can deduct it from CRA as well?

nelsona · Post by **nelsona** » Mon Feb 06, 2006 6:23 pm

As was mentionned, your credit for Fed and state tax is NOT from your W-2, it is from your return.

TN Holder · Post by **TN Holder** » Mon Feb 06, 2006 6:29 pm

Yes you are right, I ment the sum of federal and state taxes paid based on 1040.

Actually based on new way of income and tax credit calculation I won't owe much to CRA, probably couple of thousands.

So many thanks to Mark and Nelson