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Thanks for the quick response.

I think my Canadian tax liability on this will be between 30% and 40%.

I made about $75K of Canadian employment income, plus the $20K USD 401K income.

So let's call it $100K CDN $ total income after converting 401K to CDN $, ballpark.

I will likely just file a ...

Hi Nelsona,

Canadian citizen/resident commuted to the US to work for 5 years. Each year correctly grossed up my US income on my Canadian return by the 401K contributions, deducted them on line 207, completed RC268 form, etc.

In 2019 I have no US employment income (worked in Canada). However, I ...

Thank you so much!!

Yes correct, no tax was withheld. I have no ITIN, so I was really hoping no US return was required.

Just curious, is this because the tax on this policy would have been paid for by grandfather upon transfer of the ownership to me or perhaps it has something to do with the ...

I have an unusual situation that I can’t find any information on. My grandfather was a US citizen and US resident who recently died. He owned a whole life policy with Phoenix Life. Just before he died, he transferred the ownership of the policy from him to me and I surrendered it for the cash value several months after he died. I’m a Canadian citizen and resident of Canada. I just received a 1042-S slip with the following info in the following boxes:

Box 1: Income code 15
Box 2: Gross income $75K
Box 3: Chapter indicator “3â€￾
Box 3a: Exemption code 00
Box 4a: Exemption code 15
Box 3b: Tax rate 15
Box 4b: Tax rate 00
Box 6: Net income $75K
Box 13f: Ch 3 status code 16

Does anyone know if this is taxable to me in either the US, Canada or both?