Canada bank interest paid to non resident

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NewCanadian
Posts: 77
Joined: Sun Mar 07, 2010 5:07 pm

Canada bank interest paid to non resident

Post by NewCanadian »

I file 216 return to CRA which includes only rental income.
For 2025, I have few thousand dollars of bank interest income. I received NR4 from the bank but no tax is withheld.

I will include this rental income on my US 1040 but what is tax liability to CRA for this income and what return do I need to file?
pl0910001
Posts: 35
Joined: Fri Jun 21, 2019 6:33 pm

Re: Canada bank interest paid to non resident

Post by pl0910001 »

Claim the interest on your 1040. Due to the treaty, this is not taxable in Canada since it is claimed elsewhere. There is no filing in Canada necessary.
nelsona
Posts: 18724
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canada bank interest paid to non resident

Post by nelsona »

Just to clarify, Bank interest from Canada paid to US residents is not taxed in Canada, not because it is being reported in US, but only because Cdn regs (and the treaty) say so.

There is no rule that says one doesn't have to report income in one country "since it is claimed elsewhere". The poster's rental income is a perfect example: it is reported in BOTH countries.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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