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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?

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  • What's the income code?
    – littleadv
    Mar 31, 2014 at 1:53
  • @littleadv: 09 is the income code.
    – Sean Duggan
    Mar 31, 2014 at 2:14

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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".

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