T2209 non-business income Social Security benefit
Moderator: Mark T Serbinski CA CPA
T2209 non-business income Social Security benefit
I am a Canadian citizen and Canadian resident. I have two sources of income from the US: IRA distribution, from which tax is withheld, and US Social Security, from which no tax is withheld. Do I include both income sources on my T2209 line 433 non-business income when calculating the foreign tax credit?
Yes. While no US tax was withheld from the SS payment, it is still foreign sourced.
It shouldn't help you much though, since I'm sure the 15% tax you pay on your IRA is being fully used, no? If not, then the SS will help you.
It shouldn't help you much though, since I'm sure the 15% tax you pay on your IRA is being fully used, no? If not, then the SS will help you.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
I wish it was 15%. The custodian, Schwab, insists on 30%. I have sent them documents supporting 15% and many hours on the phone, but to no avail. They say they have clients in a similar position and these other clients file a 1040NR to try to get back the US tax not covered by the Canadian foreign tax credit. FWIW, I am 66 and want to get a regular distribution from the IRA.
A w8-BEN sent to schwab should cover the treaty aspects. Periodic rpension payments are to be withheld 15% by treaty. Period.
Yes, you should submit a 1040NR, and report the IRA withdrawl on the NEC chart, and get back the 15%.
Shame on schwab.
Yes, you should submit a 1040NR, and report the IRA withdrawl on the NEC chart, and get back the 15%.
Shame on schwab.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Take it easy. There are no tax issues in moving an IRA from one custodian to another. It may be difficult to find one that is cooperative (most won't deal with foreign accountholders), but schwab is not, so wht do you have to lose?
There are some out there.
There are some out there.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing