NR4 and 1040-16a

DavidB · Post by **DavidB** » Tue Apr 12, 2005 4:16 pm

We collapsed a couple of accounts last year. The income amount on NR4’s exclude brokerage fees. What should be reported on line 16a, income as per NR4 or amount that was in the RRSP before closing it?

nelsona · Post by **nelsona** » Tue Apr 12, 2005 4:29 pm

Whatever the NR says.

<i>nelsona non grata... and non pro</i>

DavidB · Post by **DavidB** » Thu Apr 14, 2005 7:33 pm

Should send the NR4's with 1040 and include a note explaining my calculations. TaxCut isn't that smart!

nelsona · Post by **nelsona** » Fri Apr 15, 2005 5:55 am

Do not send NR4s, the IRS isn't interested in them.

To get the income to show on line 16a, you usually have to create a fake 1099, with the gross amount (for 16a in USD) and the taxable amount for 16b.

You have to pick an option that doesn't generate 10% penalty tax on the 16b amount on line 59.

<i>nelsona non grata... and non pro</i>