T5 in US tax report...

mel0526 · Post by **mel0526** » Wed Feb 20, 2008 7:05 pm

Hi,

I'm living in US with a TN. I cut my link with Canada and Quebec but I keeped my bank accounts but changed my residency status with the bank. For the interest I had in 2007 on my account they send me a T5 but they said it's a mistake and I should receive after March 1st a NR4. What I have to do with the T5 and the NR4?

I already have to send a letter for tax Quebec to told them I will not do a tax report...same if I told them that I didn't leave there and work there for all 2007 they send me 2007 papers to fill. I had write that I left the Canada in 2006 for my 2006 report...

Canada told me I have nothing to do...but I have a T5?

I will fill a 1040 in US with my W2 but what about my interest of Canadian bank account? :?

Thanks you,

nelsona · Post by **nelsona** » Wed Feb 20, 2008 7:22 pm

You report all interest on your US return. The tax withheld in canada is to be used as a credit on your US return, using form 1116.

You have nothing to report in canada since you seem to have left in 2006, and are no longer resident.

mel0526 · Post by **mel0526** » Thu Mar 13, 2008 12:59 pm

It looks like, I will not receive any NR4 to replace the T5...a bank address change trouble it looks like...do I have to fill a tax report in Canada to pay tax on those interests only? I'm filling a full 1040 this year...Can I use my T5 on my US tax report?

Thanks again,

nelsona · Post by **nelsona** » Thu Mar 13, 2008 2:07 pm

You do not file anything in canada. You send them a letter with tha check for 10% of the interest.

The IRS doesn't ask for receipts. You input the values into your tax return based on your T5, and keep it for reference.

mel0526 · Post by **mel0526** » Thu Mar 13, 2008 2:28 pm

Thanks Nelsona!
Do I can fill the form 1116 in my US tax report with the 10%, I will send to tax Canada?
I feel better now...just one of the bank send me a Releve3 also...do I do something with it? They are supposed to cancel it but I don't really believe them anymore.

nelsona · Post by **nelsona** » Thu Mar 13, 2008 3:12 pm

You do not need to pay anything to QC on the interest earned after your departure date. keep the RL-3, but it is meaningless.

nelsona · Post by **nelsona** » Thu Mar 13, 2008 3:14 pm

.. and yes you can use the 10% on 1116 using the tax 'accrued' method.

Otherwise you can put it as a deduction on your 2008 return next year.