When to complete an NR4 slip (2024)

FAQs

When to complete an NR4 slip? ›

You have to report amounts on an NR4 slip if the gross income paid or credited during the year is $50 or more. However, if you paid less than $50 and you still withheld tax under Part XIII, you have to report the gross income and the tax withheld on an NR4 slip.

You have to file the NR4 information return and give the recipients their NR4 slips on or before the last day of March following the calendar year to which the information return applies, or in the case of an estate or trust, no later than 90 days after the end of the estate's or trust's tax year.

While the Form NR4 is a Canadian tax document that reports amounts paid or credited to non-residents of Canada, for U.S. tax purposes, the equivalent would be like receiving a distribution from a retirement account, which is reported on Form 1099-R for U.S. accounts.

"This guide gives information for payers and agents who make payments to non-residents of Canada for income such as interest, dividends, rents, royalties, pensions, and acting services in a film or video production.

Use the IRS Form 1099-INT. The amount in the NR4 form is in Canadian dollars, so convert it to U.S. dollars before you enter it in your U.S. tax return. To find the 1099-INT form in TurboTax, type the name of the form in the Search field and then select the 1099-INT link.

Non-residents have to pay a 25% tax on amounts that are taxable under Part XIII. However, this rate can be reduced to a lower rate or an exemption can be given under the provisions of the Income Tax Act or a bilateral tax treaty between Canada and another country.

A: A tax slip (T5 and Relevé 3 for Quebec residents) is only issued if the total interest earned on the account in which your GICs are held is at least $50. For non-residents of Canada, an NR4 tax slip is always issued when tax has been withheld, regardless of the interest amount.

To enter the NR4, treat it as if it is a SSA-1099 and enter it in the Retirement Plans and Social Security section, under 'Social Security (SSA-1099, RRB-1099)'. Answer Yes to Did you receive any Social Security benefits?

You should complete Form NR73 to get the CRA 's opinion on whether you would be considered a deemed non-resident of Canada. For more information, see Folio S5-F1-C1, Deemed non-residents. You would most likely be considered a resident of Canada (part-year resident for the year of immigration).

Form 1040-NR is often required for nonresident aliens who engaged in a trade or business in the United States or otherwise earned income from U.S. sources. A non-resident alien is somebody who is not American and lives abroad, but who earns taxable income in the U.S.

How do I enter NR4? ›

Where are NR4 slip amounts entered? Based on the code, the nature of income and the elections made by the taxpayer, it may be necessary to enter the income indicated in boxes 16 or 26 on the NR4 slip into the T1 return.

Prepare separate NR4 slips whenever non-residents change their country of residence for tax purposes during the year. Report gross income (box 16 or 26) in Canadian funds. Report the tax withheld (box 17 or 27) in Canadian funds. Use separate lines when you report income that is partially exempt.

For non-resident foreign corporations (NRFCs), the final withholding tax rate is 20% of the amount of interest earned . Dividends earned by foreign individuals not engaged in trade or business in the Philippines on their investments in shares of domestic companies are subject to the 25% final withholding tax rate.

Federal law requires U.S. citizens and resident aliens to report their worldwide income, including income from foreign trusts and foreign bank and other financial accounts.

The U.S. withholding tax rate charged to foreign investors on U.S. dividends is 30%, but this amount is generally reduced to 15% for taxable Canadian investors by a tax treaty between the U.S. and Canada. 1 Source: MSCI, BlackRock, as of August 31, 2023.

A nonresident alien is required to file a US tax return when they perform any service in the United States or earns US source income above a certain threshold. There are many situations where a Canadian individual may be living in the United States part time or making US source income.

Generally, an amount included in your income is taxable unless it is specifically exempted by law. Income that is taxable must be reported on your return and is subject to tax. Income that is nontaxable may have to be shown on your tax return but is not taxable.

Do I still need to file a U.S. tax return? Yes, if you are a U.S. citizen or a resident alien living outside the United States, your worldwide income is subject to U.S. income tax, regardless of where you live. However, you may qualify for certain foreign earned income exclusions and/or foreign income tax credits.

Generally foreign source income received by a nonresident alien is not subject to U.S. taxation. Refer to Source of Income for more information.