Part XIII Voluntary Remittance Letter on T5 Interest Earned

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chelavnzuo
Posts: 16
Joined: Wed Mar 22, 2017 1:08 pm

Part XIII Voluntary Remittance Letter on T5 Interest Earned

Post by chelavnzuo » Sat Feb 22, 2020 12:14 am

Hi all, I’m a Canadian who has spent 100% of the 2019 live and work in the US. I will receive a T5 from a Canadian bank on GIC interest income pretty soon (this is the only Canadian income I have and I’m unable to sell these GICs until they mature), could someone please kindly help me understand if below are the correct steps to deal with this situation?

1. Find the total interest income on T5 = A, this amount is about $1,500 CAD.
2. Find the deducted/withheld tax amount on T5 = B
3. Calculate the total owing to CRA = C= 25% x (A - B), or should it be 15% by Canada-US Income Tax Convention?
4. Pay the amount C to CRA, with a voluntary remittance letter explaining this is the payment adjustment to volunteer the withholding tax due

Many thanks!

chelavnzuo
Posts: 16
Joined: Wed Mar 22, 2017 1:08 pm

Re: Part XIII Voluntary Remittance Letter on T5 Interest Earned

Post by chelavnzuo » Sat Feb 22, 2020 12:46 am

Sorry I meant to write C = (25% x A) - B

nelsona
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Re: Part XIII Voluntary Remittance Letter on T5 Interest Earned

Post by nelsona » Sat Feb 22, 2020 1:19 am

GIC interest is not taxable in Canada for non-residents. You should request a refund of your Cdn tax, by filing a non-resident return, with 0 income and claim the withheld tax back.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

chelavnzuo
Posts: 16
Joined: Wed Mar 22, 2017 1:08 pm

Re: Part XIII Voluntary Remittance Letter on T5 Interest Earned

Post by chelavnzuo » Sat Feb 22, 2020 1:23 am

Got it, that's also what I just figured out using the non-resident tax calculator on the CRA website:
https://apps.cra-arc.gc.ca/ebci/nrtc/beta/ng/entry

Thanks so much for the reply!

chrispeterson007171
Posts: 1
Joined: Sat Jul 18, 2020 7:44 am

Re: Part XIII Voluntary Remittance Letter on T5 Interest Earned

Post by chrispeterson007171 » Sat Jul 18, 2020 7:52 am

There are many tax calculator apps available on Android and Apple store, you can download them and these apps definitely help you. Click http://www.technows.com/ to know more about these apps.

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