What is the rate that it is supposed be to charged as I am doing 1040/1040NR and figuring out stuff?
I found conflicting amount for Article XI
One document https://www.irs.gov/pub/irs-trty/canada.pdf states not exceed 15%
Then this https://www.irs.gov/pub/irs-utl/tax-treaty-table-1.pdf states 0%
another search stated divd @15% and interest @10%
On the CRA site on the 'Non-resident tax calculator' https://www.canada.ca/en/revenue-agency ... aimer.html states 0%
1099-INT tax withholding for CAD resident
Moderator: Mark T Serbinski CA CPA
Re: 1099-INT tax withholding for CAD resident
Bank interest is not reported on a 1040NR unless it is part of a business in US.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: 1099-INT tax withholding for CAD resident
[quote=nelsona post_id=529925 time=1702819707 user_id=30]
Bank interest is not reported on a 1040NR unless it is part of a business in US.
[/quote]
Yes I am aware of "not effectively connected with a U.S. trade or business" statement. But was wondering what the % rate is.
Bank interest is not reported on a 1040NR unless it is part of a business in US.
[/quote]
Yes I am aware of "not effectively connected with a U.S. trade or business" statement. But was wondering what the % rate is.
Re: 1099-INT tax withholding for CAD resident
The withholding is zero.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: 1099-INT tax withholding for CAD resident
Bank interest is not reported on a 1040NR IF THE CORRECT WIHTHOLDING RATE WAS APPLIED is more accurate. b/c if wrong rate applied, IT IS REPORTED ON 1040NR SCH NEC
"Bank interest is not reported on a 1040NR"
"Bank interest is not reported on a 1040NR"
Re: 1099-INT tax withholding for CAD resident
Only if it is OVER-withheld, of course, in order to be refunded. In this case ANY withheld interest.
From 1040NR NEC Instructions for line 2b (taxable interests)
If the interest is tax exempt under a treaty
but the withholding agent withheld tax,
report the interest on Schedule NEC
(Form 1040-NR), line 2. Use column d
and show 0% for the appropriate rate
of tax
You would then report the withheld tax as a tax payment, and it would be refunded you.
In any event, our poster was asking what the correct rate was, which is ZERO by Article XI(1)
From 1040NR NEC Instructions for line 2b (taxable interests)
If the interest is tax exempt under a treaty
but the withholding agent withheld tax,
report the interest on Schedule NEC
(Form 1040-NR), line 2. Use column d
and show 0% for the appropriate rate
of tax
You would then report the withheld tax as a tax payment, and it would be refunded you.
In any event, our poster was asking what the correct rate was, which is ZERO by Article XI(1)
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing