I have stock in a Canadian company whose US branch I used to work for. They mailed me an NR4 form for my interest last year. I'm trying to fill out my tax forms this year and the advice I keep seeing is to put it down as a 1099-DIV as 1b income after currency conversion. Do I put the same value down for 1a to keep the tax software from complaining?

  • What's the income code?
    – littleadv
    Mar 31 '14 at 1:53
  • @littleadv: 09 is the income code. Mar 31 '14 at 2:14

Income code 09 is dividends, so yes - it is the same as line 1 of the US form 1099-DIV.

1a or 1b however depends on whether the requirements for qualified dividends are met. If they're met - its 1b, if not - 1a. These are treated and taxed differently.

See here on what are the qualification requirements. Note that Canada has a tax treaty with the US making Canadian corporations "qualified foreign corporations".

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.