Reporting foreign employment income

Where can I report foreign employment income with DT Max?

If the T4 reports income earned outside of Canada or, for Quebec residents, if an RL-17 is attached to an RL-1, enter the amount of employment income showing on the T4 slip (or RL-1) in the T4 group, and the portion attributable to foreign income (box B of RL-17) in the keyword T4-Income.fi of the Foreign-Inc group.

The amount entered in the T4 group will be reported on line 101 of the federal and Quebec income tax returns. The amount entered in the Foreign-Inc group will not be reported as income on the tax return as it is already included in the amount entered in T4 . However, that amount will be used in the calculation of the overseas employment tax credit or the foreign tax credit.

If the taxpayer worked for a foreign employer or a Canadian employer who was not paying the wages from its office in Canada, there will not be a T4 slip nor will the income be subject to CPP/QPP contributions. Enter this amount with the keyword Income.fi in the Foreign-Inc group. The income will be reported on line 104 of the federal income tax return and on line 101 of the Quebec income tax return.

If an RL-17 was sent, the amount showing in box A (total deduction) must be entered in the keyword OVERSEASDEDQ in the group Foreign-Inc . The amount will then be reported on line 297 of the Quebec return.

Please note that Quebec does not offer a foreign employment tax credit matching the federal. A deduction is granted only if an RL-17 was issued. Boxes C to G of RL-17 should be ignored but boxes H and I must be entered in the keywords QUAL-DATE-1 and QUAL-DATE-2 if the federal overseas employment tax credit is claimed.