For foreign income and taxes that are reported on a slip—such as a T3, T5, T5008 or T5013—select the currency at the top of the slip.
For certain currencies (such as USD, EUR or GBP), you can choose either the year average or a monthly exchange rate.
If the amount is reported in Canadian dollars, choose CAD. TaxCycle will apply an exchange rate of 1.00000. You must still enter the name of the foreign country to trigger the FTC calculation.
When you select the currency, TaxCycle inserts the exchange rate and applies it to values on the slip.
Type the country name.
TaxCycle uses the country name to associate the income and tax with the related FTC worksheet and make a claim on the T2209 or T2036 forms. To group information for the same country onto the same set forms, enter the same country name on all slips or forms like the T776. For example, enter USA on all foreign slips rather than US on one, and USA on another.
Slips that allow foreign income reporting have boxes for entering foreign income and tax paid. For example, on the T5 slip, enter foreign income in box 15 and foreign tax paid in box 16.
In the Amount column, enter foreign income and tax in the same currency as reported on the slip.
The Total column includes the conversion of the amounts from all slips to CAD.
Use the Foreign Income worksheet for income and taxes that do not appear on a slip—such as US Social Security Benefits or a foreign pension. This worksheet behaves like other slips but allows more flexibility in the types of income you can report.
