I worked for a Canadian employer in past and I am a Canadian resident, because the employer had corporate offices in US they provided me stock options through a US broker.
Now that I am trying to exercise the options and sell the shares but they are asking to handover withholding tax and the broker is saying this is how it works.
I want to ask how would this be reported to CRA when I file for tax, because I left the employer they wont provide me another T4 slip, or I do not need to report anything about this income and withhold tax and CRA and IRS handles this internally?
US Stocks witholding tax
Moderator: Mark T Serbinski CA CPA
The IRS and CRA don't handle anything "internally". You will need to report the income on both your US (1040NR) and rgular Cdn return. If the amount is less than $10K US, you can claim treaty exclusion and get any withheld US tax back.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing