T2209 non-business income Social Security benefit

helayangu · Post by **helayangu** » Mon Jan 27, 2014 2:11 pm

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?

nelsona · Post by **nelsona** » Mon Jan 27, 2014 4:20 pm

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.

helayangu · Post by **helayangu** » Fri Jan 31, 2014 12:16 pm

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.

nelsona · Post by **nelsona** » Fri Jan 31, 2014 2:34 pm

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.

nelsona · Post by **nelsona** » Fri Jan 31, 2014 3:09 pm

I would be moving my business elsewhere

helayangu · Post by **helayangu** » Fri Feb 07, 2014 9:25 am

Can I move my IRA business? Can a Canadian Citizen Canadian Resident open another IRA in the States? If so, then does moving an IRA to another custodian unleash any tax demons IRSwise or CRAwise?

nelsona · Post by **nelsona** » Mon Feb 10, 2014 9:33 am

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.

helayangu · Post by **helayangu** » Mon Feb 10, 2014 6:23 pm

Can you tell me where to look for one, please?

nelsona · Post by **nelsona** » Tue Feb 11, 2014 9:58 am

There a lots of IRA firms out there. Call a few and let us know. How much assets are we talking about?

helayangu · Post by **helayangu** » Fri Sep 05, 2014 11:44 am

Patience persistence patience perseverance - I did it! Got an IRA withdrawal with 15% withholding.

nelsona · Post by **nelsona** » Thu Oct 16, 2014 9:30 am

Please do not post questions (on an existing thread. And make a little more sense, please.