Nelsona:
I talked to you about this previously. I live in US, but in the summer of 2009 I cashed out a $2500 life insurance policy, when I visited my mom in Canada and gave her the money. You said when I received the tax slip there was nothing to report to Canada.
The life insurance company made out a T5, in my name, and mailed it to my mom's Canadian address, and the life insurance company said I have to pay taxes on $1695. out of the $2300 I gave to my mom. Canada Revenue Service says to file a T1 general, (which there are many of them on CRA's website). from USA and they will let me know how much I have to pay to Canada.
You said file with IRS, (but it has my mom's Canadian address on T5), jointly with my husband. I printed out a T1 general form "Income Tax and Benefit Return for Non-residents and deemed residents of Canada". I don't know what "deemed residents" means? Is this the correct form and/or your advise.
US resident, how to claim a T5 form
Moderator: Mark T Serbinski CA CPA
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carolepudlock
- Posts: 24
- Joined: Thu Jan 07, 2010 10:18 pm
agency sent me wrong tax form
I just found out a T5 cannot be filed by a non-resident to CRA, the agency sent me a Canadian resident slip, as they used my mothers canadian address.
They need to send me a NR4 tax slip for non-residents to file with CRA.
are you there today? I received no reply? this is a real mess especially when I am only reporting $1695 taxable income. your thoughts? Carol
They need to send me a NR4 tax slip for non-residents to file with CRA.
are you there today? I received no reply? this is a real mess especially when I am only reporting $1695 taxable income. your thoughts? Carol
I think you answered your own question. You need to tell the insurance company you are a US resident, and they need to issue you a NR-4 for any income that is taxable. They should also be withholding tax from any payment made. I think this might depend on the type of income, but will be something like 10%. Then when you file your US taxes you can complete form 1116 and get a creidit for those foreign taxes paid (the amount the insurance company withholds). If they already paid you the money, then you'll need to talk to them about how to get the withholding tax to them.
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carolepudlock
- Posts: 24
- Joined: Thu Jan 07, 2010 10:18 pm
T5 and NR4
steve:
I cashed in the policy June, 2009. received $2200 cdn.I received the T5. No taxes were withheld, but I have to pay CRA tax on $1695. Insurance company told me to send them a check for $377 (22.2% tax) and they will file to CRA on my behalf and send me something to cancel out T5.
I spoke to a Canadian accountant, there is a tax treaty and shouldn't have to pay anymore than 15%, (you say 10%)? I am sending insurance company $255 (15%) and they will file with CRA. I TOLD THEM I WILL NEED THEM TO SEND TO ME, NR4 TO SHOW I PAID TAXES TO CANADA to hand over to our usa accountant re: foreign tax credit.
Life insurance company is still trying to figure this out. London Life in London Ontario. I told them they also calculated this wrong. 22.2%? dOES THIS ALL SOUND CORRECT TO YOU?
I cashed in the policy June, 2009. received $2200 cdn.I received the T5. No taxes were withheld, but I have to pay CRA tax on $1695. Insurance company told me to send them a check for $377 (22.2% tax) and they will file to CRA on my behalf and send me something to cancel out T5.
I spoke to a Canadian accountant, there is a tax treaty and shouldn't have to pay anymore than 15%, (you say 10%)? I am sending insurance company $255 (15%) and they will file with CRA. I TOLD THEM I WILL NEED THEM TO SEND TO ME, NR4 TO SHOW I PAID TAXES TO CANADA to hand over to our usa accountant re: foreign tax credit.
Life insurance company is still trying to figure this out. London Life in London Ontario. I told them they also calculated this wrong. 22.2%? dOES THIS ALL SOUND CORRECT TO YOU?
I think you're on the right track by talking to them and getting the withholding tax paid. They should be able to determine the amount (%) of withholding, and be able to explain it to you. There is a guide for them at this link http://www.cra-arc.gc.ca/E/pub/tg/t4061/t4061-e.html
and there is an information circular at this link http://www.cra-arc.gc.ca/E/pub/tp/ic76-12r6/README.html which has tables where you can look up the different withholding tax rates for different types of income. Look for the US in the lists.
Hopefully these links work and you find what you need. Good luck.
and there is an information circular at this link http://www.cra-arc.gc.ca/E/pub/tp/ic76-12r6/README.html which has tables where you can look up the different withholding tax rates for different types of income. Look for the US in the lists.
Hopefully these links work and you find what you need. Good luck.