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have etf VTI and notice each quarter there is a deduction for non-resident tax, what does this imply, eg. in regards to income tax return, deduction?, need to file a US income tax return

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have etf VTI and notice each quarter there is a deduction for non-resident tax, what does this imply, eg. in regards to income tax return, deduction?, need to file a US income tax return

Thanks
It's the 15% withholding tax that Canadian residents pay on dividends received in taxable / TFSA / RESP accounts. When you receive your T-slips, you'll receive a tax credit for the withholding tax. No need to file an US income tax return.
 

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That 15% is US withholding tax.

I own some US stocks and ETF's and pay this when I get US dividends.

Make sure you add it all up...check your t5 etc, then use it against canadian income taxes otherwise payable , as a "foreign taxes paid" tax credit when you file next year.

You'll have to ask for the forms from Canada Revenue agency,,,fill it in, and add it to your tax return.

Its really not that complicated and well worth it, as you'll be paying tax TWICE on the same income if you don't.

good luck.


Anthony
 
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