T5 needs help with his T5s.

[Table 5]

So I've already done my American taxes, but I also made a whopping $557 bucks from Canada last year (jealous much?) from two different investment sources. One of the T5's ($500) I reported to the IRS down here, but the second T5 ($57) I received after I had already sent my tax documents off, so I couldnt include it.

Therefore I have two questions for any tax accountants on here.

1) For the $500, do I need to report my Canadian income to Revenue Canada even though I've already done so here in the US?

2) The remaining $57 is a piddly amount to file taxes for. Can I delay this this till 2012 or something, when presumably I'll have some other Canadian income to add to?

[Ducay]

Are you a Canadian Resident? (tax definition). I assume you're already paying taxes on all your Canadian income if so? As such, wouldn't you be including the T5 on your total income tax filings?

[Table 5]

I'm a Canadian who's lived in the US for 8 year now, so virtually all my income comes from the US, so I file it here. These T5's are for interest from a couple of small investments in Canada.

[Ducay]

Originally Posted by Table 5

I'm a Canadian who's lived in the US for 8 year now, so virtually all my income comes from the US, so I file it here. These T5's are for interest from a couple of small investments in Canada.

I going assume you've been through the process and know for sure you're not a Canadian resident for tax purposes. Doesn't really matter where most of your income comes from, residency is based on a bunch of wishy-washy factors, living in US and earning all your income there automatically make you a non-resident.

[Ashee]

Assuming that you're declaring to be a non-resident (NR) in Canada for tax purposes, the ideal scenario would be:
- You notify your bank that you are NR.
- Your bank withholds the appropriate amount of taxes for you on the investment income, and issues you an NR4 as opposed to a T5.
- You would input both the income and the taxes withheld (as foreign taxes paid) on your US tax return, which essentially is just for reporting purposes and would not subject you to additional tax (because of the foreign taxes paid to Canada already).
- You wouldn't have to do anything else on the Canadian side if you had no other income here.

Since you said you received T5s, your bank probably doesn't know that you're an NR and thus didn't withhold taxes for you (you should notify your bank now for the entire 2011 if you plan on remaining as an NR, and the above scenario would apply - makes things easier). As for this year, check out this link for the Canadian side of things:

http://www.cra-arc.gc.ca/tx/nnrsdnts...nrs-eng.html#f

Looks like you're okay on the Canadian side as long as the interest is from an arm's length party. I'm not too sure about the US side of things, but hopefully that helped.

[mrkajz44]

Additionally, don't worry about the withholding income on the interest. The current US-Canada tax treaty has a withholding rate of 0%, so you won't even have to worry about claiming a foreign tax credit.