Stock vesting - tax withheld by both US and Canada - 1040NR

puzon23 · Post by **puzon23** » Wed Mar 30, 2016 11:31 pm

Hi All,

I was wondering if anyone can tell me how I should deal with this situation.

I had RSU granted to me while I still worked in Canada. Those units vested after I moved to US last year. Since they were given to me while working in Canadian branch of the company I received two paystubs for this vesting. One from my Canadian company which shows the amount vested and the Canadian tax withheld. It also shows on my T4. I also got a paystub from US which shows the vesting and the US portion withheld. Also, W2 shows this vesting as well.

I believe that this happened due to mismatch of information for my broker who did not have a correct W8-BEN on file so I got tax withheld by both countries.

Now I'm preparing my tax returns, Canadian departure and US 1040NR and I wonder how to get the "extra" withholding back. Should it be on the US return and then claim tax credit? If so, which forms do I use? Or, should I claim it on Canadian return and use tax credit form from Canada? A little confused what I need to do here and the forms to use.

Any help would be appreciated! Thanks!

puzon23 · Post by **puzon23** » Thu Mar 31, 2016 9:29 pm

OK, so I see there were no responses to my inquiry but that's ok.

I checked my statements in a lot more details as well as my brokerage ones and I see the problem. My broker withheld a lot more tax than necessary and that is because they did not have anything on file for me, neither W8-BEN nor W9.

So now I have to get it back somehow. The problem is that I do not know how. I don't know how to do it through form 1040NR. There is no space anywhere in there to show backup withholding tax. I have the amount I received in box 4 on form 1099-B but where do I put it? Or maybe it is not that amount but it is a calculated one...

What forms, what calculations? If anyone can at least put me on the right track would be nice.

Thank you all for looking! :)

nelsona · Post by **nelsona** » Fri Apr 01, 2016 10:28 am

Of course there is a spot. Its on the tax withheld line.

puzon23 · Post by **puzon23** » Fri Apr 01, 2016 10:38 am

Thanks for replying.

So I assume that you mean I should use line 62a for this. That's the only place I can think of. Also, since the 1099-b was issued for sell to cover operation I believe that the income it shows does not need to be added anywhere since it is already part of w-2 reported income.

Thanks again!

nelsona · Post by **nelsona** » Fri Apr 01, 2016 1:20 pm

I think you've used up enough questions, com back in may.