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!
Part XIII Voluntary Remittance Letter on T5 Interest Earned
Moderator: Mark T Serbinski CA CPA
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Re: Part XIII Voluntary Remittance Letter on T5 Interest Earned
Sorry I meant to write C = (25% x A) - B
Re: Part XIII Voluntary Remittance Letter on T5 Interest Earned
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. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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Re: Part XIII Voluntary Remittance Letter on T5 Interest Earned
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!
https://apps.cra-arc.gc.ca/ebci/nrtc/beta/ng/entry
Thanks so much for the reply!
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Re: Part XIII Voluntary Remittance Letter on T5 Interest Earned
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.