US Stocks witholding tax

[ali90]

I worked for a Canadian employer in past and I am a Canadian resident, because the employer had corporate offices in US they provided me stock options through a US broker.

Now that I am trying to exercise the options and sell the shares but they are asking to handover withholding tax and the broker is saying this is how it works.

I want to ask how would this be reported to CRA when I file for tax, because I left the employer they wont provide me another T4 slip, or I do not need to report anything about this income and withhold tax and CRA and IRS handles this internally?

[nelsona]

The IRS and CRA don't handle anything "internally". You will need to report the income on both your US (1040NR) and rgular Cdn return. If the amount is less than $10K US, you can claim treaty exclusion and get any withheld US tax back.