Computer Tips - When does the US deduct tax from dividends (for Canadians) ?
Keywords: USA, Canada, TFSA, RRSP, IRS
Q. When does the US deduct tax from dividends (for Canadians) ?
A. This info only applies to Canadians. I think this info is correct but
you are crazy if you rely on me for tax advice! Check the government
websites for authoritative answers.
If you own US stocks inside a RRSP, the US does not deduct any tax from
If you own US stocks inside a TFSA, the US skims 30% tax on dividends.
Filling in a W-8BEN form (this is an IRS form) lowers this to 15%.
You can recover it (see below) but not at the favourable dividend tax rate.
If you own US stocks in a non-registered account (ie not RRSP or TFSA)
the situation is the same as in a TFSA. But you can get the tax back
by filling in a T2209 foreign tax credit form when you file your Canadian taxes.
Source for this info:
My Dividend Predictor Android app: