A follow up 1042S question

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whatvisatouseNew Member
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Posts: 4
Joined: 22 Mar 2009

A follow up 1042S question

Post Wed Mar 25, 2009 1:09 pm

Hi,

I am filing as a non resident in Canada and a resident in the US since last year. Previously I was a resident in Canada and NR in the US.

I receive a 1042-S from Vanguard each year. I guess I need to inform them I'm now a resident. They withhold tax. How do I report the interest correctly?

Thanks!
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StevenCanuckAbroad VIP
Posts: 3637
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Joined: 28 Sep 2007
Location: Calgary

Re: A follow up 1042S question

Post Thu Mar 26, 2009 10:56 am

They shouldn't withhold tax if you're a Canadian, Canadians are exempt under the tax treaty. You need to claim it back, can't remember how to do it off-hand but if you're filing 1040 I think you just reduce the amount payable by that amount and include an explanation with your return.

The instructions for the 1040 explain how to report income, depends what the source is, put it in the right box on the form.
Steve.
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