Claiming credit for RRSP dividends taxes withheld

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rswagner
Posts: 1
Joined: Thu Oct 16, 2014 5:18 pm

Claiming credit for RRSP dividends taxes withheld

Post by rswagner »

Hi folks,

My apologies if this is a duplicate post; I'm a Canadian citizen, US Permanent Resident. Been here for 16 years. For the first time, FY2013 i got a 1099 from our RRSP holder (Citigroup Canada), and they withheld US taxes on ordinary dividends.

Not sure why after all this time that would happen, but bottom line is I want to know if there's a way to claim a credit for these taxes in my filing?

Thanks.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

They are not supposed to withhold taxes for IRS as RRSPs are exemt entities. There have been directives issued by IFIC etc on this. This is dragging your RRSP a bit as you are losing value in your RRSP. there is info somewhere on this forum regarding this issue, but it was resolved several years ago, indusrty-wide.

But, until they correct this situation, the tax that was withheld is like any other tax withheld and remitted to the URS: you include it on line 62 of your 1040, along with the tax that was withheld from your US wages, etc.

But you are not supposed to have any withholding tax, and should be fighting this -- when it happens, not a year later.

You also must have a W-9 on file with them.

if you go to this link
http://www.johnsenarcher.ca/newsletters ... .S.+STOCKS

and scroll down a bit you will see an explanation. basically, citigroup is supposed to advise the comapnies issuing the dividends that the shareholders are exempt from withholding.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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