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Browse - Computer Tips - When does the US deduct tax from dividends (for Canadians) ?

Date: 2011jan31
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:

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