T626 Tax Form: Overseas Employment Tax Credit

What is the T626 tax form?

The T626 tax form is used to calculate the overseas employment tax credit (OETC). If you are resident in Canada, you may be able to claim this credit for certain types of income from overseas employment. This credit takes away 80% of the Canadian income tax on the first $100,000 of salary, wages and other remuneration earned from overseas employment. 

How do I fill out the T626 tax form?

Your employer fills out Part 1 and you fill out Part 2 of the form. You have to enter the tax year in which you received overseas employment income. If the period covers more than one year, fill out a T626 for each tax year. 

Can I apply for the Overseas Employment Tax Credit and the Foreign Tax Credit?

Yes, you can claim one or the other or both the Foreign Tax Credit and the Overseas Employment Tax Credit.

What conditions apply?

Conditions apply to the type of income, the type of employer, the employee’s activities and the period of employment. To view the T626 tax form, click here. For more detailed information, see Interpretation bulletin IT-497.

Get Started with TurboTax Today

Get started with TurboTax today
You Might Also Be Interested In...