Line 10400 – Other employment income:
Foreign employment income
Note: Line 10400 was line 104 before tax year 2019.
Foreign employment income is income earned outside Canada from a foreign employer.
Report your foreign employment income in Canadian dollars. In general, the foreign currency amount should be converted using the Bank of Canada exchange rate in effect on the day you received the income. Alternatively, the CRA will also generally accept a rate for that day from another source if the source meets all of the following conditions.
The source is:
- widely available
- published by an independent provider on an ongoing basis
- recognized by the market
- used in accordance with well-accepted business principles
- used to prepare financial statements (if any)
- used regularly from year to year
If the amount was paid at various times in the year, you can use the average annual rate.
If the amount on your United States W-2 slip has been reduced by contributions to a 401(k), 457, or 403(b) plan, US Medicare and Federal Insurance Contributions Act (FICA), you must add these contributions to your foreign employment income on line 10400 of your Canadian return. These contributions may be deductible. See line 20700.
Do not reduce your foreign income by the amount of tax the foreign country withheld. Instead, you may be able to claim a foreign tax credit when you calculate your federal and provincial or territorial taxes. See line 40500.
Completing your tax return
Report on line 10400 of your return your foreign employment income in Canadian dollars.
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