Thursday, July 24, 2014

Roll Back Withholding Tax On Canadian Stocks With Form NR301

by Roger on February 5, 2013

Online Broker Charles Schwab Sent Me Form NR301

canada-nr301-reduce-dividend-withholding

Reduce The Tax That Canada Keeps From Your Dividends

If you paid attention to your January 2013 brokerage statement you may have noticed that Canada increased the withholding tax on stock dividends from Canadian companies like GoldCorp, which pays a monthly dividend.

Only one of my online brokers, Charles Schwab, alerted me to this coming ahead of time. More time would have been preferable, but we’re getting it handled.

It turns out that if you file from NR301 from Canada Revenue (NR303 for LLC’s) then you can roll back the INCREASE in what Canada withholds automatically from your dividend payments.

Can’t I Claim That Tax Back On My US Form 1040?

Sure, you can get that Canadian withholding tax back by going through the hoops on your US Form 1040, and I suggest you do.

Yet, under certain circumstances, you may not get ALL of that tax back.

And, why have it taken from you in January 2013 and not get it back until your refund gets deposited in your bank account in mid June of 2014? I know, you can’t get any interest on your money thanks to Fed Head Helo Ben Bernanke and Company and their ZIRP (Zero Interest Rate Policy) designed to make us pay for the mistakes of the banks, but maybe you’ll find something else to do with the money.

So if you have any Canadian stocks that pay dividends (in a taxable account, they don’t withhold in an IRA account) then download the NR301 or NR303 as appropriate and get it sent in to Revenue Canada.

If Charles Schwab is your broker then they can help you. If you are using someone like Interactive Brokers, don’t bet on it.

Be Sociable, Share!

Previous post:

Next post: