I have canadian tax form t4ps with amount in box 35, since this is profit sharing for pension do i need to enter on us tax return and if so where

[DianeW777]

It depends. If you are in the United States (US) follow the information and steps below. This can be entered into TurboTax using the steps below and may be eligible for the foreign tax credit if you are also paying tax in Canada (CA).

1. Open or continue your return. To enter your sale in TurboTax, follow these steps. Click this link for more information. Where do I enter Investment Sales?
2. Navigate to the investment sales section:
   • TurboTax Online/Mobile: Go to investment sales. If using this application, make sure it is open
   • TurboTax Desktop: Search for investment sales and then select the Jump to link.
     • Or Personal Tab > Continue > I'll choose what I work on > Scroll to Investment Income > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other
3. Answer Yes to the question Did you sell any of these investments in 2024? (or Okay! to Time to kickoff your investments!).
   • If you land on  the Investment sales summary or Your investments and savings screen, select Add More Sales or Add investments.
4. Now you will answer some preliminary questions.  Say no if you did not receive a 1099B.
5.  Next screen is critical because it asks you for the sale price(proceeds), description, what you originally paid for it, date sold, date acquired etc. Try to fill in details to the best of your ability to get to the loss amount.
6. For the questions asking about employee stock, you will say no to this as this primarily addresses US Based employers.
   • Where do I enter the foreign tax credit (Form 1116) or deduction?

[rws33808]

I DID NOT WORK IN CANADA, I AM A US CITIZEN AND WORK FOR A CANADIAN COMPANY IN THE US THE AMOUNT IN BOX 35 IS POSITIVE, NOT A LOSS DO I NEED TO ENTER IN THE US TAX SYSTEMS

[DawnC]

Yes, if you are a US citizen, you need to repot all of your income on your US tax return.   Your Foreign Income (Canadian) and can be entered using the instructions below.     

How do I enter foreign income?  

[suzyljackson]

To continue on with this, I'm in the same boat here.  I’m a US citizen working for a Canadian company.  I am signed up for their ESPP (employee stock purchase plan).  I was told by the Canadian company's payroll dept that this "other income" dollar amount showing on the T4PS in box 35 I had already paid my US taxes for this portion.  So wouldn't this mean that this income amount is already IN my paycheck since the taxes are taken out of the paycheck and I should NOT have it added to my wages again to be taxed on it again? I was also told that I would ONLY need to show any of this on my taxes is if I sold some of the Employee Stock and had any capital gains. In my case I did NOT sell anything.  Also they did NOT issue any dividends this year which I know if htey did, I would need to claim that. Thank you for more clarification on this.  It has been a nightmare.

[JotikaT2]

If you are asking how this should be treated on your U.S. income tax return, please see Employee Stock Purchase Plans for more details.  Typically, you'd only need to report the transaction on your personal taxes when you actually sell the stock.  How do I enter Employee Stock Purchase Plan (ESPP) sales in TurboTax provides steps to help you enter this information into your US tax return.

@suzyljackson