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Hi. I have some money in various mutual funds at Vanguard (in the US obviously) from when I worked out there. This is not a retirement account. Vanguard automatically witholds 30% of the dividends for non-residents of the USA.

1-After I submitted details on my income/taxes paid from dividends to the CRA this year, I was informed I could only claim credit for a maximum of the 15% of the income. I've paid the difference to the CRA. What exactly do I have to do to get a refund from the IRS?

My income is not high enough for me to have to file a return in the US so I'd appreciate any pointers you guys might have.

2-Also, is there a way for me to move the money to Canada without triggering all those taxes/currency conversion fees etc? My broker here is Questrade.

The sums of money involved aren't enormous so hiring an accountant doesn't seem worth the amount of money I'd get back....

Thanks.
 

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Hi. I have some money in various mutual funds at Vanguard (in the US obviously) from when I worked out there. This is not a retirement account. Vanguard automatically witholds 30% of the dividends for non-residents of the USA.

1-After I submitted details on my income/taxes paid from dividends to the CRA this year, I was informed I could only claim credit for a maximum of the 15% of the income. I've paid the difference to the CRA. What exactly do I have to do to get a refund from the IRS?

My income is not high enough for me to have to file a return in the US so I'd appreciate any pointers you guys might have.

2-Also, is there a way for me to move the money to Canada without triggering all those taxes/currency conversion fees etc? My broker here is Questrade.

The sums of money involved aren't enormous so hiring an accountant doesn't seem worth the amount of money I'd get back....

Thanks.
In answer to #1, these articles say that you need to get your Vangard to file a W8-BEN form on your behalf with the US gov't. You may be out of luck for the taxes already paid but I'm not a tax expert.

http://blog.canadianbusiness.com/buying-u-s-securities-tax-considerations/
http://blog.taxresource.ca/tfsa-non-resident-withholding-taxes/


For #2, if you still like the mutual funds, asking Questrade to request a "transfer-in-kind" might work. I'm not sure what Vanguard might charge and Questrade might also have a charge but if the transfer is possible, it is likely not considered a sale for tax purposes. All that has changed is who is holding the mutual funds for you.

As for currency, if you already have a US dollar account with Questrade, that may be a way to avoid converting the currency as it would be a transfer. The taxes on the sale would still be due, plus potentially any fees by Vanguard.
 
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