Filing your taxes in Canada and came across the T2209 – Federal Foreign Tax Credits form? Not sure when to use it? You’re not alone — this is a common question for Canadians who report foreign income.
Here’s what you need to know:
When to Use the T2209
You only need to complete the T2209 if you:
Earned income in another country, and
Paid foreign tax on that income
The T2209 helps you claim a foreign tax credit, so you’re not double-taxed on the same income — once by the foreign country and again by Canada.
When NOT to Use the T2209
If you earned foreign income but didn’t pay any foreign taxes (for example, investment income from a country that doesn’t withhold tax), you don’t need to fill out the T2209.
Instead, simply:
Report the foreign income on the “Other Income” page of your tax return
Do not include the T2209 form as the system will not accept it with a zero amount.