Foreign Divedent Income on form NR-4


B

birk

I own some stock in a company that is held in Canada. the gross revenue
from the dividend is US$29.50. I received an NR4 form whic is described as
a "statement for amounts paid or credited to non-residents of canada".
The form reports that US$4.43 was withheld. My question is how do I deal
with this on my income taxes?

If I understand right, I can enter $29.50 under "ordinary divedends" and
then since they withheld less than $300 in tax, I can clain a $4.43 foreign
tax credit without having to fill out form 1116. Does anyone have any
experience with foreign dividends that can comment on if I am doing this
right?

-Ryan
 
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P

parrisbraeside

I own some stock in a company that is held in Canada. the gross revenue
from the dividend is US$29.50. I received an NR4 form whic is described as
a "statement for amounts paid or credited to non-residents of canada".
The form reports that US$4.43 was withheld. My question is how do I deal
with this on my income taxes?

If I understand right, I can enter $29.50 under "ordinary divedends" and
then since they withheld less than $300 in tax, I can clain a $4.43 foreign
tax credit without having to fill out form 1116. Does anyone have any
experience with foreign dividends that can comment on if I am doing this
right?

-Ryan
Values listed on the NR4 slip is in Canadian dollars - convert them to
US dollars using an appropriate exchange rate.

The dividends are reported on Schedule B with other dividends. If
appropriate, indicate them as qualified otherwise they are all
ordinary. If you are unsure, mark them as ordinary. The taxes withheld
were at treaty rate of 15% so there is no refund. Report that on 1116.

The rest is up to you, though you may wish to pay for help on this one.
 

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