How do you enter IRS 1042-S form details?

[jmfskipper]

Hi, I just received a 1042-S form from dividends income from a US stock. How do I go about entering the information from the 1042-S form into UFile?

I selected "Foreign income - dividends" and U.S. Then entered the exchange rate.

1042-S states Gross income of X, with Exemption code 15, Tax rate 15.00, and Federal tax withheld Y.

Should I enter X or X-Y into "foreign income received"? Y was already deducted at source.

"foreign tax paid" is Y (btw, this amount makes no difference in total refund!)

Anything in the "Income exempt under a tax treaty"?

I found that a large % (greater than my highest tax bracket) of "foreign income received" will be deducted off my final refund. I don't get it!

Thanks for any insights.

[Geo123]

Hello jmfskipper,

See below for an example of how to enter the 1042-S.  Regarding  X or X-Y  and "Income exempt under a tax treaty" (probably not) please contact the CRA.

Example :

There are various types of IRS investment tax slips

* 1099-DIV

*1042-S Summary of Investment Income

 

To enter these IRS slips:.For example 042-S Summary of Investment Income

>>>Interview setup

(left hand navigation pane - - beneath “CRA Express NOA”) >> Double click “interview setup”

>>On right hand of screen

Find the section [Investment income and expenses]

>>Select Foreign income or foreign property (T1135) - - >

  >>Foreign capital gains - Stock, mutual funds & other non depreciable property

>>In the section [Foreign non-business income]

  >>Income from foreign dividends

(or interest / capital gains / other)

 *Country from where you received the foreign income

If the country signed a tax treaty with Canada, a deduction under 20(11) will not be allowed.

[United States (tax treaty with Canada)]

*Description of the source of the foreign income  [042-S Summary of Investment Income]

 If you are entering amounts in Canadian dollars, enter 1 for the exchange rate. The average exchange rate for $US was 1.3497 in 2023. See the Bank of Canada's website (www.bankofcanada.ca) for other exchange rates.

 *Exchange rate to apply [1.3497]

 *Amount of foreign income received [$1,000.00]

 *Amount of foreign tax paid [$25.00]