I am a Canadian resident and I received dividends and interest income from the U.S. Do I have to file a U.S. tax return?
Allan Madan, CA
No, first of all, dividend from the U.S. is subject to 15% withholding tax whereas interest income from the U.S. is not subject to any withholding tax as per the Canada – U.S. tax treaty. Both sources of income will not create a U.S. tax filing liability to Canadians as long as the proper amount of withholding taxes were applied to the dividend (15%). As such, you do not have to file a U.S. tax return.
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