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Email this7:07 am
July 16, 2019
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I'm a newbie in investing in stocks and would like to know how folks handle the US IRS withholding taxes on dividend income. Does this work itself out when filing our Canadian tax returns with a tax treaty between the US and Canada or do I need to file the W-8 BEN form with the IRS?
7:54 am
October 27, 2013
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Your brokerage should ask you to fill out a W8-BEN form and sent it back to them to avail yourself of 15% withholding in the Can-US tax treaty as compared to the standard 30%. If they do not ask you to fill one out, prompt them (the brokerage) directly about filling one out.
This withholding tax, generally shown on a T5 or, in the case of an ETF or mutual fund a T3, tax slip will become a FTC (Foreign Tax Credit) on your T1 tax return to help avoid double taxation.
12:07 pm
July 16, 2019
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Thanks AltaRed.
I'm dealing with one the big banks so they should be able to do things properly for reducing the withholding tax to 15%) . I've sent them a message to ensure they have our account properly documented.
5:15 pm
April 6, 2013
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You have to file an IRS W8-BEN form with your broker, not with the IRS:
▶ Go to www.irs.gov/FormW8BEN for instructions and the latest information.
▶ Give this form to the withholding agent or payer. Do not send to the IRS.
The broker cannot do anything but collect the form from you and keep it on file.
9:32 pm
October 27, 2013
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Muskydriver said
Thanks AltaRed.I'm dealing with one the big banks so they should be able to do things properly for reducing the withholding tax to 15%) . I've sent them a message to ensure they have our account properly documented.
You are the one to fill out the W-8BEN and sign it and send it back to the brokerage.
7:09 am
July 16, 2019
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AltaRed
I spoke with brokerage folk this morning and they assure me that everything is in order without the need for the W-8 BEN for tax withholding at 15%. Thanks for your input.
7:48 pm
March 15, 2019
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Muskydriver said
AltaRed
I spoke with brokerage folk this morning and they assure me that everything is in order without the need for the W-8 BEN for tax withholding at 15%. Thanks for your input.
Are all your foreign holdings in U.S. securities?
8:12 pm
April 27, 2017
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Muskydriver said
AltaRed
I spoke with brokerage folk this morning and they assure me that everything is in order without the need for the W-8 BEN for tax withholding at 15%. Thanks for your input.
If you hold US securities in non-reg then without W-8BEN your broker must assume you are a non-treaty foreign investor. And that means 30% withholding on dividends. You may have filled it in when you applied; otherwise it's a problem.
Please write your comments in the forum.