How to report foreign "income"

[e.cichlid]

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.

[Geo123]

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
Example
>>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