Canada tax on 1040

dhirenasha · Post by **dhirenasha** » Fri Apr 04, 2008 2:13 am

While showing the CAD income on 1040...

From Canadian tax to 1040:

(1) Which income is to be reported (a) line 150 (Total income) or (b) line 236 (net income)

(2) Are CPP and EI are to be included in total tax paid?

DS

nelsona · Post by **nelsona** » Fri Apr 04, 2008 5:43 am

1. Your Cdn income is entered on the lines which it qualifies, without deductions.

2. CPP and EI qualify as foreign tax to be used on eitehr 1116 or schedule A, unless you exclude the wages by 2555, in which case neither the CPP/EI nor the tax owed on wages can be used.

dhirenasha · Post by **dhirenasha** » Wed Apr 09, 2008 1:24 pm

So in short its the total income which is to be reported on 1040 and NOT the net income what we get after deducting RRSP cont.

nelsona · Post by **nelsona** » Wed Apr 09, 2008 1:52 pm

No deductions when reporting the wage.
RRSP contributions, if made thru employer can be removed from gross pay only in 2008 and forward. Personal RRSP contributions still are not deductible anywhere on 1040.