JPF Home Page Forums International Chapter Message Boards Canada Chapter Message Board Across the border earnings.

Did anyone here have across the border earnings and have 30% income tax withheld? Did you have to jump through hoops and get a tax number from the IRS to retrieve your money?

Just did a 1040NR for a client to recoup about 18k in taxes witheld on gambling winnings...and the ONLY reason we filed the 1040NR is that gambling winnings are not taxable in Canada....making the exercise worthwhile...


What you might consider though is simply filing Canadian returns, which you'll have to do anyway because you are taxed on your worldwide income....and claim the US taxes as a tax credit...meaning Canada recognizes that the tax has already been paid to the US....which will reduce your Canadian tax bill....


You likely still have to file a 1040NR...but it would be a "nil return" stating the income is only taxable in Canada...simple, and if you're paying someone, much less costly....

Thanks John for replying. I was told to fill out a W-7 to get a Individual Taxpayer Identification Number from the IRS. I've already filled out and sent W-8BEN form. On the W-7 form they ask to send my birth certificate and drivers license or passport and they want the original or official copy. I'm trying to reach them by phone to clarify a few points but can't get hold of them so far. All this for about $100.00 that they withheld.

I am on low pension income and I doubt that I will have to pay any Canadian tax this year, which is good, but I could use that $100.00. What is the 1040NR form? Where can I get one?

You can download it - I googled it, here's the link:
http://www.irs.gov/pub/irs-pdf/f1040nr.pdf

and here are the instructions for filling it out:
http://www.irs.gov/pub/irs-pdf/i1040nr.pdf

Yeah The ITIN can be a hoop to jump through...

What they want is "notarized" copies of the documents...and the Notary must be one acceptable to them....that'll cost you some money for the Notary's seal...

Sorry to be the bearer of bad news ... on the bright side, you'll only ever have to do it once. And the 1040NR is a "fillable" pdf file, so that part should be easy once you get your ITIN

and way to go Vikki...simply save the PDF files and open them. The return is a fillable pdf file so you can complete the retun and use the save as to save a completed return..


Is it royalty income or CD sales? In either case, its "business income" ....fill it all out (no nil return) and take their basic exemption (its about $3400) and show Nil income, then claim the tax back...so that you are in fact filing a return in the USA...I wouldn't bother with expenses.

In Canada, do what needs to be done.


Ciao

The income is my share of a contract that Pump Audio got for placing one of my songs on a TV show in the USA.

I'm in the process of filling out a W-7 form and I am dialing a number that is on the form that I'm suppose to call if I have questions, the number is 1-800-829-1040, it rings but nobody answers.

Thanks both of you for replying.

I didn't think I could fill out an income tax return for the USA because I don't have a SIN number for the US.

"I don't have a SIN number for the US"

The ITIN is the identification number you need...once you get it, you can fill out the 1040NR