# Getting Back Tax Withheld re US Dividends



## calban (Feb 10, 2012)

I gather that it is possible to recover the 15% tax withheld on dividends paid from a US corporation in respect of shares held in a non-registered trading account. But how do I do so? Is there a specific Tax Guide, and what form should I use and attach to my return?


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## humble_pie (Jun 7, 2009)

to best of my knowledge investor doesn't get back the NR tax withheld.

instead investor gets a tax credit for foreign taxes paid on his canadian tax return.

there are individuals with dual US/canadian citizenship who can convince their broker that they should be exempt from US NR withholding, possibly due to some article or articles in the existing tax convention between the 2 countries. Not well-informed about this, sorry, do not have dual citizenship.


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## warp (Sep 4, 2010)

Call the gov't at Forms Line 1-800-959-2221, and ask for a form T-2209.
This is the "Federal foreign tax credit" form.
( or you can print one from the govt site , CRA.GC.CA/forms

Then follow the directions on the form, to use your US taxes, ( or any other country as well), withheld, as a tax credit against your Canadian taxes payable.

It is a bit complicated at first, but not difficult to do.
I do it every year.

Remember too to get the same Provincial form, Form T-2036, because if the Federal foreign taxes credit does not use up ALL the foreign taxes paid, you can apply any left over against your provincial taxes.

Hope this hepls.....good luck


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## Eclectic12 (Oct 20, 2010)

humble_pie said:


> to best of my knowledge investor doesn't get back the NR tax withheld.
> 
> instead investor gets a tax credit for foreign taxes paid on his canadian tax return.
> 
> there are individuals with dual US/canadian citizenship who can convince their broker that they should be exempt from US NR withholding, possibly due to some article or articles in the existing tax convention between the 2 countries. Not well-informed about this, sorry, do not have dual citizenship.


According to this post - there is an NR7 form that can be used to get back the additional 15% US withholding tax that a Canadian filing a W8-BEN form should have avoided of the total US withholding tax of 30%.

http://www.canadiancapitalist.com/check-your-withholding-tax/


The 15% that Canadians have to pay, only has the foreign tax credit available.


Cheers


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## calban (Feb 10, 2012)

Thanks all. Particularly Eclectic12. Your link to Canadian Capitalist spelled it right out for me.


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