claiming withholding tax on US dividends

andied · Post by **andied** » Sun Jan 24, 2010 2:24 pm

Dual citizen living in Can, receiving dividends from US stocks - there is a 15% withholding tax on these dividends. Does Can transfer this tax to the IRS and then I can claim it on my US return, or do I claim it as FTC on my Canadian return?

nelsona · Post by **nelsona** » Sun Jan 24, 2010 5:38 pm

This is tax remitted to IRS. On your Cdn tax, you use it as part of the US tax you claim as foreign tax credit. On your US return it is part of the tax remiteed to IRS that you count as a "payment".

nelsona · Post by **nelsona** » Sun Jan 24, 2010 5:39 pm

If you have correctly informed your brokfer as to your US citizenship, they should be issuing your a 1099, with tax withheld indicated.

andied · Post by **andied** » Sun Jan 24, 2010 7:03 pm

Thanks nelsona, I should notify my brokerage RE my US citizenship; it is an account I have had for 20+ years and I have never been asked if I was a USC. It is only
from reading your advice that I have become aware of the possibility or requirement(?) for this notification.

nelsona · Post by **nelsona** » Sun Jan 24, 2010 8:54 pm

It would make your life easier to get a 1099