# Foreign non-business income tax paid on T3? can i get it back from the IRS?



## getliquid (Mar 2, 2014)

I have a US currency ETF, on my T3 box 34 Foreign non-business income tax paid $138.60, I assume its the tax paid to the IRS as withholding tax? Can I get that back by submitting some kind of form to the IRS? similar to the CRA non resident withholding refund?

if I can't get it back, aint I getting double taxed?


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## Eclectic12 (Oct 20, 2010)

My understanding is that one reports the T3 numbers and claims the foreign tax credit on one's Canadian tax return. This will reduce or eliminate the double taxation.

The time I have heard of filing a US tax return to get a refund is more for items such as a US partnership that has a much higher tax rate (40% I believe). As far as I am aware, there is no form to submit to the IRS.


What rate was the withholding tax taken at (15%, 30% or 40%)?


I hold almost all US investments in RRSP or pension accounts so I limited experience.



Cheers


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## GreatLaker (Mar 23, 2014)

getliquid said:


> I have a US currency ETF, on my T3 box 34 Foreign non-business income tax paid $138.60, I assume its the tax paid to the IRS as withholding tax? Can I get that back by submitting some kind of form to the IRS? similar to the CRA non resident withholding refund?
> 
> if I can't get it back, aint I getting double taxed?


You aint not getting double taxed.

That box represents tax foreign governments charged on dividends paid to you. It is recoverable as a credit against your Canadian taxes owed.
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns409-485/405-eng.html
http://www.taxtips.ca/filing/foreigntaxcredit.htm


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## getliquid (Mar 2, 2014)

So according to the links above, I'm suppose to have the figure at line 405 = to the tax paid to get it back? I'm using studio tax and its showing $0? attached the page below...

Also Just got my T3 from CIBC for Ishares and Vanguard ETF, however some of the distribution dates are in 2016 and it was included in the total... I'm guessing the declaration date is the date they based it on?


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## AltaRed (Jun 8, 2009)

In my opinion there is something wrong on Line 3 of the 2209. It should show $90.30 (the lesser of line 1 or 2).


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