Question

How to enter Canada NR4 (Income code 11) into US tax return?

Forum|Forum|4 years ago
May 4, 2022
1 reply
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Have a Canada NR4 with values in both line 1 and line 2. Line 2 doesn't have any non-resident tax withheld and has exemption code = S. Line 1 does have have non-resident tax withheld. Both lines 1 and 2 have some gross income. How to enter either of the lines into US 1040 tax return?

S

SundayInSalem

Enter your Canada NR4 (Income code 11) income in the section for US Social Security.

Type ssa-1099 in Search in the top right
Select Jump to ssa-1099

See @PatriciaR’s answer at How do I file NR4 (CAD) with income code of 11 for US taxes?

Enter your withholding as a foreign tax credit or deduction.

Type foreign tax credit in Search in the top right
Select Jump to foreign tax credit

Where do I enter the foreign tax credit (Form 1116) or deduction?

K

kwt89Author

Thank you @SundayInSalem . Where I'm confused is that BOTH Line 1 and Line 2 have a non-zero Gross Incomes on the NR4, but Line 2 doesn't have any non-resident tax witheld and has an Exemption Code = S. Do I still need to report BOTH Line 1 and Line 2 on US income tax return, or just Line 1 ?

I checked on https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4061/nr4-non-resident-tax-withholding-remitting-reporting.html#P1269_50798, and the definition of Exemption Code "S" is a bit unclear to me:

Other exempting provisions – Income Tax Act: Exemption from withholding tax as a result of other exempting provisions in the Income Tax Act, other than those given above in code G, M through P, R, and U.