I need help deciphering Canadian T4 for US tax reporting on US Form 1040 and Form 2555. Where do I find specific information about how to handle boxes 34, 38, 40 and 14?

1). Box 34 (Personal Use of Employer's Automobile)  Approx CAN$7,500
2). Box 38 (Security Options Benefits)  Approx CAN$250
3). Box 40 (Other Taxable Allowances and Benefits: TAB-GROUP INS 2)  Approx CAN$1,000
4). Box 14 (Employment Income) Approx CAN$108,750.  This is the GRAND TOTAL of the above three items (Boxes 34, 38 and 40) together with CAN$100,000 of ordinary wage earnings.

695

Expert Alumni

Feb 24, 2022 6:54:23 PM

After looking at the T4 form, and then selecting the PDF, there are no entries for Boxes 34,38,or 40. If you scroll in he PDF, it mentions Do not report these amounts on your tax return. For Canada Revenue Agency use only. (Amounts in boxes 30, 32, 34, 36, 38, 40, 57, 58, 59, 60, and 86 are already included in box 14.) You do not report or account for these separately on your return since it is included in Box 14.

If you are reporting this income, you would just report the amount in Box 14 and Box 22, (income tax withheld). To report:

Go to federal>income and expenses
Less common income>foreign income and exclusion
Enter the income.

If you don't try to exclude your income and decide to enter as taxable, you may claim a foreign tax credit for the income tax that is withheld in Canada.

Click on federal> Deductions and Credits at the top of the screen
Select I will choose what I work on
Scroll down to Estimates and Other Taxes Paid
Select Foreign Taxes and then select start

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I need help deciphering Canadian T4 for US tax reporting on US Form 1040 and Form 2555. Where do I find specific information about how to handle boxes 34, 38, 40 and 14?