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Old 05-19-2016, 12:16 PM
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Worldwide Income

I worked for a US based company and was seconded to their Canadian based company. My employer stated all of my US and Canadian income in Box 1 of my W2. In addition, I have a T4 with my Canadian income shown there as well. As a consequence by US based income is overstated by the amount earned in Canada. For example, my US based income was $30k and my Canadian based income was $70k. My W2 shows $100k in Box 1, but US taxes were only withheld on the $30k earned in the US (SS tax and medicare tax appear to have been properly withheld and paid on the full worldwide income). My T4 shows I earned $70k. When I fill out my Form 1116, my worldwide income is overstated by 70k, and my US tax liability is significantly overstated in the calculation. My employer (former) will not issue a corrected W2. How do I handle this do that my income is not overstated?



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