non-resident tax not showing on T5

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Augusta
Posts: 10
Joined: Sun Aug 21, 2005 10:32 am

non-resident tax not showing on T5

Post by Augusta »

I legally moved to US in Oct. 2005. I have a Canadian bank account and recently I received the T5 slip. There was no tax withhold although I have notified the bank about my departure (I kept on file a Canadian address though, I was told it is better to have a Canadian mailing address). I called the bank and I was told that I will not get another T5 slip and I have to make myself the calculation and get the interest amount earned as a Canadian resident/non-resident and also the 25% non-resident tax on the interest earned as a non resident. I have to put everything in writing and attach to 2005 returns.
So in the Canadian return I'll put the interest earned as a Canadian Resident only, on the US return the whole amount for the 2005 (I choose MFJ) and claim credit for 25% tax on the interest that should have been withheld by Canadian bank. My questions are:
-For the Canadian return: How do I make CRA to take this 25% tax on interest? I should send a separate check? I should diminish my refund on Canadian taxes with this amount?
-For the US return: How do I prove the 25% tax was taken by CRA?

Thank you!
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

The NR tax on interst for US residents is only 10%, not 25%. Your bank should only have withheld 10% and you should be able to track this on your statements.

If your bank did not withold, then you should send a letter to CRA, with a cheque for 10% of the interst paid after your left canada.

For US, you don't provide proof, you keep your records.

Youshould NOT be using a Cdn mailing address if you do not live in Canada. It is incorrect that it is better. They will mail your statement to your proper address.
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
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