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Double counting world income?


Aaron
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I am filling out the "Statement of world income" since I was away for part of the year. In it, I reenter the income I made during that time. At the end, however, it adds the (same) income I declared in my T1 schedules, effectively doubling the income during that time, so that my net world income is way too large. This in turn affects the credits I'm allowed, e.g. on my quebec form. What is going wrong here? Should I not have declared that taxable income on the T1?

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Are you suggesting that the income i made while I was not a resident should not be entered in the TP1? 

 

The statement of world income has entries for all of the income made during the time I was not a resident. Hence the re-entry. 

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To report a foreign income or foreign property, please follow the steps below:

 

1- In the "QuikClik Navigator", located on the left-hand side of the screen, click on "Interview setup".

2- On the page appearing on the right, choose "Foreign income or foreign property" and click "Next" at the bottom of this page.

3- In the "QuikClik Navigator", click on "Foreign income and property".

 

On the right-hand side, you can select the item based on the foreign income or property that applies to your situation and complete the page accordingly.

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  • 9 years later...

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.

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