I got a 1042-S tax slip as I have some shares in a US company and received some dividends from it - non cash. I have $55.00 of gross income reported but at the same time there is a Chapter 3 indicator and underneath it says 3a exemption code 02 (which basically means exempt under IRC). In my TurboTax return in Foreign slip section, I put $55 as Investment Income, do I need to put the same amount under Investment income exempt under a tax treaty?
I don't see any taxes withheld in the 1042-S tax slip.
If it is exempt, then you would only enter it under "Investment income exempt under a tax treaty".
@TurboTaxSusan, Thanks for replying to my post. How would I know if it's exempt? I have attached a snip of the tax slip below
If you are not sure if the amount is tax exempt, you can check the Canada/US Tax treaty:
Or you can contact the Canada Revenue Agency (CRA). If you are in Canada or the United States, you can call the CRA at 1-800-959-8281. If you are elsewhere, you can call 613-940-8495. This page has more ways to contact the CRA: Contact the Canada Revenue Agency