If I’m a Canadian citizen and resident of Canada with an IRA in the US (Age 75 taking equal periodic monthly withdrawals) and completed form W-8BEN to reduce the withholding tax to the 15% treaty rate; do you still have to file a US 1040NR tax return every year? This is my only US income.
It would essentially be a nil tax return, because the institution that has the IRA now withholds the correct 15%. They used to withhold 20%, and a 1040NR return would be required every year to recover the 5%. However, someone told me about the W-8BEN form and they recently reduced the withholding to the correct 15% in October of 2015.
1040NR Required if Withholding 15% Treaty Rate?
Moderator: Mark T Serbinski CA CPA
No. If the withholding is correct, and you have no other income in US, you do not have to file a 1040NR.
There are 5 conditions, any one of which would make you have to file. 4 have nothing to do with your situation. one states:
2.A nonresident alien individual who is not engaged in a trade or business in the United States and has U.S. income on which the tax liability was not satisfied by the withholding of tax at the source.
Since your tax liability WAS satisfied, you don't meet this requirement.
There are 5 conditions, any one of which would make you have to file. 4 have nothing to do with your situation. one states:
2.A nonresident alien individual who is not engaged in a trade or business in the United States and has U.S. income on which the tax liability was not satisfied by the withholding of tax at the source.
Since your tax liability WAS satisfied, you don't meet this requirement.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best