1040 effective tax rate

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nelsona
Posts: 18359
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Your 1040NR only has US source income. the 10% refers to other US income other than wages (like US bank interest or dividends).

on interest, the CRA expect the interst be reported proportionally to what that person contributed to the account. So if you made the contribution, you should be paying the tax in canada.

You should follow the same principal in US, if you are filing a 1040. You can use the tax you owe on that money as a credit in US.

i think I'm going to end this thread now. See you in May
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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rg1495
Posts: 43
Joined: Sun Jan 29, 2006 12:54 pm

Post by rg1495 »

One last question and I promise not to bug you anymore. My Canadian TDWaterhouse brokerage account (has USD investments) has some dividends and withholding taxes. The T5 says Total Gross Foreign Income in the form of dividends - $X and US Non Resident Tax withheld- $Y. Will this go on 1040 as well??

Thanks for all your help.
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