TFSA Dividend Reporting - 3520A & 1040

drow · Post by **drow** » Sat Mar 11, 2017 9:34 pm

Canadian working in US throughout 2016. Filling US tax for 2016.

TFSA earned $508 CAD in dividends in 2016. Reported $378 USD on 3520A Part II Line 2, 8 and 16. All other lines under Part II reported $0 USD.

Looking for guidance on where to report dividends on 3520A Page 3 "2016 Statement of Foreign Trust Income Attributable to US Owner", and 1040. Last year my tax advisor put dividends under line 1b "tax-exempt interest", but then did not report it on the 1040.

On another note, is it required to report unrealized gains within the TFSA? Or is this simply handled under 3520A Part III Line 18 "Accumulated trust income", and not required to be reported on 1040?

Any help, or feedback would be much appreciated. I've searched this forum for hours, and have found a ton of great advice. Thank you in advance.

nelsona · Post by **nelsona** » Wed Mar 15, 2017 3:46 pm

Obviously your advisor was wrong, as this was taxable income in US.

drow · Post by **drow** » Wed Mar 15, 2017 4:23 pm

That's a shame... more so, the fact that I'm having to ask this on his forum. Given the exorbitant cost of his services you would think this would be handled correctly.

Thanks for your response nelsona... would you be able to touch on the other aspects of my original post? Your help would be sincerely appreciated.

nelsona · Post by **nelsona** » Wed Mar 15, 2017 4:42 pm

No. There are others who have put together info on 3520 for TFSA and RESPs.

Why not just close the TFSA. Every penny you take out, you can out back if you ever return to Canada.