The Commerce Journal,Business and Local Businesses
*The Commerce Journal>>>Canada Taxes

US income source in 101 or 104 to be included even you paid tax in the US?

I was working from January - July, 2007 in U.S for a U.S company as a student (1099 form)
and studying. Now I returned to Canada and I'm going to file 2007 Canadian tax return.
I have already paid the tax from my US source to IRS. If I include that amount in
line 101 or 104 in T1 form would not it look like I am paying double tax...
Is anyone out there knowing whether I can not include my U.S income in 101 or 104 line of
T1 form? Thank you in advance for answers

It all gets included in your Canadian tax. Canadians pay tax on worldwide income, as do Americans, by the way.

You then need to file for a Foreign Tax Credit, (sorry, don't have the form number at hand right now) which will include information on the tax paid in the US. You get a credit for the US tax paid, which offsets your Canadian tax payable on that same income.

Tags
　　Spain Taxes 　　Singapore Taxes 　　Mexico Taxes 　　Ireland Taxes 　　India Taxes 　　Germany Taxes 　　Canada Taxes 　　Australia Taxes 　　Small Business 　　Renting & Real Estate
Related information
  • If I sell my primary residence and move into my rental property can I avoid capital gains tax?

    you do not pay capital gain tax on selling your principal residence in canada - it is tax exempt

    ...
  • Can i claim mileage for business and if so what rate?

    You may claim mileage for business trip if your employer requires u to use a personal car to see clients or customers. Pls note that to and from your home to your employer's work place is co...

  • What address do I mail my taxes to?

    If you got sent tax forms in the mail then you should have received a sticker with the address. Just glue it to the front of the envelope. If not go to the post office and pick up a tax package ...

  • Why is it good to have some sort of pension plan?

    The pension gives a retired worker a monthly cheque to support his daily living when he/she no longer receives a monthly salary cheque. The govt CPP gives a retired Canadian worker a monthly che...

  • What may happen if you do not do your income tax form each year?

    If you owe money, you will be charged 5% of the amount as of May 1 (the day after your return is due). You will then be charged interest on top of that ,at a pretty high rate. You can be charged ...

  • For Canadians, How can I change it so that my GST cheque gets directly deposited into my bank account?

    Call up Revenue Canada and request it (phone number is on your Notice of Assessment). They'll send you a form to fill out and send back to them (with either a void cheque so they have your ba...

  • 2007 Canadian Taxes - Scholarship Deductions?

    ...

  • I was audited in DEC apparently I owe $800 now I filed my 07 taxes and it said i have a $1400 refund.. help!?

    More US replies I see, but in this case the rules are pretty well the same it seems. Assuming your audit report is finalized, CRA will deduct the audit figure from the refund for this year. PS ...

    • 　

    Commerce Categories--Copyright/IP Policy--Contact Webmaster