Line 104 - Foreign employment income

Foreign employment income is income earned outside Canada from a foreign employer. Report this income in Canadian dollars. Use the Bank of Canada exchange rate that was in effect on the day you received the income or paid the expenses. If the amount was paid at various times throughout the year, you can use the average annual rate.

Note
The amount on your United States W-2 slip may have been reduced by contributions to a "401(k), 457 or 403(b) plan, US Medicare and Federal Insurance Contributions Act (FICA)." If this is the case, you must add these contributions to your foreign employment income on line 104 on your Canadian return. These contributions may be deductible. For more information, see line 207.

If you paid foreign taxes on foreign income you received, do not reduce the amount you report by the amount of tax the foreign country withheld. However, you may be able to claim a foreign tax credit when you calculate your federal and provincial or territorial taxes. For more information, see line 405.

Completing your tax return

Enter on line 104 your foreign employment income in Canadian dollars.

Forms and publications

• General Income Tax and Benefit Package - Guide, return and schedules
• Form T2209, Federal Foreign Tax Credits

Related topics

• Line 207 - Registered pension plan (RPP) deduction
• Line 405 - Federal foreign tax credit