Jump to content

How to report foreign "income"


Recommended Posts

Hi All,

If I receive a cheque from a US-based business for services rendered, what form would I used?

Not taxes are withheld in the US. I'm not considered an employee, but more of a consultant under contract.

I was told that I need to complete a T2125. But I'm not registered as a business. Earnings could be above 10,000 USD.

Thank you, in advance, for your guidance.

Link to comment
Share on other sites

Hello e.cichlid,

Below is an example if you are not filing with a T2125 business

For IRS 1099-NEC / 1099-MISC / Independent Contractor  < = = = IF you did not receive a 1099 enter "Contractor
>>Go to Right Hand Screen - Interview SetUp
  >> Investment income and expenses 
  >> Foreign income and foreign property (T1135) "-->"(blue arrow)

>>Go to Left Hand side of screen
  >>Foreign income and property
  >>Section [Foreign non-business income]
  >>Foreign employment income  “+”  < - - CLICK on “+”

*Description of the source of the foreign income [IRS 1099-NEC]  or [IRS 1099-MISC]  or [Contractor]  < = = = IF you did not receive a 1099 enter "Contractor
If you are entering amounts in Canadian dollars, enter 1 for the exchange rate. The average exchange rate for $US was 1.3013 in 2022. See the Bank of Canada's website (www.bankofcanada.ca) for other exchange rates.

Exchange rate to apply    [1.3013]
Foreign employment income not entered on a T4 page [$25,000.00]  < = = USD
Employment expenses related to the foreign employment income
Sales expenses
Travelling expenses
Other foreign employment expenses – specify Description
Amount of foreign tax paid 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Create New...