Reporting RSU income granted in Canada

[laveeshr]

Hey, 

I was granted some RSUs from my employer while I was in Canada which vested when I moved to the US. My employer takes care of automatically calculating the percentage of time I was in each country and paying them their dues on taxes which makes things slightly easier for me.

Questions:

I am not sure if I need to report the Canadian income to US since I've already paid taxes on the US equivalent income for the same RSU.

Also, can I claim Foreign Tax Credits for this amount also? Does TurboTax Premium take all these nuances into consideration when preparing for my returns?

Thanks!

[AmyC]

If you are filing the 1040, you should report all income. The US -Canada treaty explains which country taxes the incomes and the other gives credit for any double taxed income. 

2. Yes you want to claim the foreign tax credit for double taxed income.

3. Yes premium handles it all.

[laveeshr]

Thank you for the reply Amy. Where/How should I add this income in TurboTax? This income is in Canadian Dollars and I didn't technically receive any 1099 for it, what category should I file it under in the Turbo Tax portal? And does it automatically convert CAD to USD? If not, what conversion should I apply? Is there any general rule of thumb for it? 

Thanks a lot for the help!

[RobertB4444]

You would report this the same way you would if it were US income.  Since it wasn't reported to you on your W2 you can report it as miscellaneous income.  Scroll down in the wages and income section of your federal return until you reach the bottom section 'Less Common Income'.  Around the middle of that section is "Foreign Earned Income and Exclusion".  You're going to enter it there.  

Click start and then enter the RSU income as wages earned on a statement from a foreign employer.  Here's where you have to do the work OUTSIDE of TurboTax.  You'll need to google the conversion rate on the date that you received the RSU income or as close to it as you can and then convert the Canadian amount to USD in order to enter it here.  

Once you've done that the system will walk you through steps to figure out if you can exclude any of this income from your return.  It will also help you enter the taxes you already paid on this amount in Canada so that you aren't paying the taxes twice (you're going to have to convert that amount as well).

@laveeshr