Robert919

Issue: Net World Income number is incorrect (inflated). The software appears to be double-counting the non-Canadian-source income Background/Context: During the 2021 tax year, the taxpayer earned both Canadian source income and foreign source income. The taxpayer resided in Canada during the first 5 months of 2021 then emigrated to the US, residing there from June 1, 2021 through December 31, 2021. The taxpayer is a non-resident, as determined by CRA, for the purposes of the 2021 tax return. Process and Issue: I entered the taxpayer's Foreign employment income using the form of the same name located on the Foreign income and property page contained within the interview tab. I also used the same form to enter the employment related expenses (social security, medicare, etc.) and the foreign withholding tax. The software added the gross foreign income on line 10400 (Other employment income). Since the taxpayer emigrated from Canada during the year and status at the end of the year was "non-resident" I completed the Emigrant and Residency status forms located on the Immigrant, emigrant, non-resident page. Since the taxpayer earned Canadian-source income and non-Canadian-source income during the part of the year the taxpayer was a non-resident of Canada, I completed the Statement of World Income is used to determine the taxpayer's eligible non-refundable tax credits claim. Part A of this form calculates a percentage (used to prorated the eligible NRTCs) based on the number of days the taxpayer was in Canada if the Canadian-source income is less than 90% of the non-Canadian-source income during the time the taxpayer is residing outside of Canada. Part B of this form calculates "Net world income for the whole year", calculated as follows: Total non-Canadian-source income for the part of the year the taxpayer was a non-resident + The amount from line 23600 on the return THE PROBLEM: Line 23600 already includes the total non-Canadian-source income as this information is entered (as noted above) on line 10400, which carries through to line 23600, Net income. As a result I have a net world income number here that has double counted the foreign income earned. I figure i must have made an error somewhere or missed an override but i have been through this many times and i cannot figure out how to correct for this. If there is anyone who has encountered this or is familiar with non-resident returns, please HELP! Thanks so much.

I am encountering the same issue in the 2021 software, and there appears to be no override. The taxpayer in my situation has Canadian source income and foreign source income. The taxpayer resided in Canada for part of the year, emigrated to the US during the year and, is a non-resident per CRA residing outside Canada on Dec 31, 2021. The foreign employment income has been entered correctly and using the methodology indicated by Gabriel's post. The software adds the foreign income on line 10400 (Other employment income). Since the taxpayer earned Canadian-source income and non-Canadian-source income during the period the taxpayer was a non-resident of Canada, the Statement of World Income is used to determine the taxpayer's eligible non-refundable tax credits claim. Part A of this form calculates a percentage (used to prorated the eligible NRTCs) based on the number of days the taxpayer was in Canada if the Canadian-source income is less than 90% of the non-Canadian-source income during the time the taxpayer is residing outside of Canada. Part B of this form calculates "Net world income for the whole year", calculated as follows: Total non-Canadian-source income for the part of the year the taxpayer was a non-resident + The amount from line 23600 on the return THE PROBLEM: Line 23600 already includes the total non-Canadian-source income as this information is entered (as noted above) on line 10400, which carries through to line 23600, Net income. As a result I have a net world income number here that has double counted the foreign income earned. I figure i must have made an error somewhere or missed an override but i have been through this many times and i cannot figure out how to correct for this. If there is anyone who has encountered this or is familiar with non-resident returns, please HELP! Thanks so much.