1042-S reporting

[Wcao]

Hi,

I got a 1042-S from the USA IRS. I am not a US resident.  It's a very small amount from a dividend and I'm trying to claim it. (attached)

 

I used foreign income - Dividend and completed the following.

Exemption code 15 is Chapter 4 -  15 Payee not subject to chapter 4 withholding

For the income exempted under a tax treaty, what would I enter? (57.32 or 17.20?)

 

[Geo123]

Hello Wcao,

*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  [1099-DIV or 1042-S]
 
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  $amount
 *Amount of foreign tax paid  <- - -  - please verify with CRA if eligible
 

 

[Wcao]

For people also with a 1042-s

Just called CRA (waited 2 hours...) so not worth that credit...

For Dividend under the treaty, the tax is 15% unless you own 10% of the voting shares. anything above and beyond will be a credit.

In my case.

.15% * 57.32 = 8.60.

17.20 - 8.60 = 8.60

 

[Geo123]

Hello Wcao,

Thanks for the update.