Please explain withholding

Journadian · Post by **Journadian** » Thu Mar 16, 2017 4:15 pm

Does paying withholding to the Cra mean I won't see this money again? Is there a way I can get it back? I have a rental income - paying the part 13 tax. Also had to do an international waiver for work in Canada.
I discovered late that I had to do these. The amounts I need to pay back is really depressing.

Please help

nelsona · Post by **nelsona** » Thu Mar 16, 2017 4:32 pm

for your rental income, you need to file a section 216 return on which you report and pay tax on your NET rental income, at the 25% rate. Any withholding, which should be remitted monthly, will be credted and you should get some back.

Use the amount calculated on your 216 return as the Cdn tax available as credit on your US return when reporting the income of your 1040.

is the work you are doing IN CANADA self-employed or as an employee of the Cdn firm?

Journadian · Post by **Journadian** » Thu Mar 16, 2017 8:02 pm

Thanks for the reply nelsona

It's nice to know I can get some back.. So you mean that I will get back from the American tax? I might be filing 1116 since it's a rental in Canada.
I was in Canada self employed. My Canadian employer issued a T4a. but now since we discovered the waiver center wants to withhold, my employer will issue a T4a-nr. which is really bad timing because I just sent out my tax return...

I'm wondering if I need to pay back my employer for the withholding?

nelsona · Post by **nelsona** » Fri Mar 17, 2017 3:37 am

Withholding is withheld from YOU and sent to the Govt. Your questions suggest you are not really up tp speed on doing taxes, so should consult a professional