My wife is a non-resident alien (Canada), but I am filing married filing jointly. Below is a snapshot of her condensed T1 for a previous year that I have to amend.
TOTAL INCOME
Employment income: Box (10100) $86790.19
Taxable amount of dividends from taxable Canadian corporations (Box 12000): $146.44
Interest and other investment income (Box 12100): $5683.16
NET INCOME
Pension adjustment (Box 20600) $13901
Registered pension plan deduction (Box 20800) $11960
RRSP/pooled registered pension plan (PRPP) deduction (Box 20800) $2268.81
Annual union, professional, or like dues (Box 21200) $2268.81
Carrying charges and interest expenses (Box 22100) $1901.37
Deduction for CPP or QPP enhanced contributions on employment income (Box 2215) $60.50
Net income (Box 23600) $68262.87
This is your taxable income (Box 26000) $68626.87
The question is, what do I put for employment income for FEIE. I don't believe putting the full $86790.19 from box 10100 is correct, as she is not taxed on that fully after the deductions. I believe that I should take her taxable income (box 26000) and minus box 12000 and box 12100 (investment incomes) and that should be the value I put on FEIE. On this example, I got $62898.27 that I should put on her FEIE (obviously have to convert to USD). Box 12000 and 12100 should be placed under foreign credits as they are investment incomes. Does that sound right you guys?
