Non-resident returns and NR4 slips

[nonresidentDE]

I've found a few useful posts about this topic but am still unclear on a few points.

I have NR4 slips related to dividend income from a Canadian institution.  I recognize that for my non-resident return I'm supposed to use the total income from all such slips like this in completing the Statement of World Income. 

Two questions about this:

1. The world income asked for 'net investment income'.  Is this meant to be the amount after withholding taxes (i.e. from the NR4 box 16 'gross income' minus box 17 'non-resident tax withheld')?  Or is it just box 16 (gross)?

2. From what I've understood I'm also supposed to enter these in the T-slip section (i.e. in addition to using the values for the world income statement).  I read already that there's no NR4 option in TurboTax, so I could use T5, but the boxes numbers are different.  Am I supposed to do this, or is it double-counting?  As far as I understood the withholding tax is your final obligation to the CRA.  And if I otherwise didn't have to file (as was the case the past few years) I wouldn't have done this anyway.

Hope this makes sense.

[TurboTaxBrenda1]

You will need to enter the amounts in the NR4 tax slips; This TurboTax article will help you; What's an NR4 slip and how do I enter it into TurboTax?

Thank you for choosing TurboTax.

[JMSPENCER]

I have two NR4s - withdrew my RRSP when I returned to Australia.  The correct withholding tax has been deducted from the amount I withdrew (15% becuase of the Doubt Tax Agreement between Australia and Canada) but I can't see anywhere I can put what the amount of tax witheld is.  When I put the Net amount into the Statement of World Income - Turbo Tax calculates that I owe thousands to CRA but this isn't correct because the tax has already been withheld. How do I overcome this ?

[nonresidentDE]

I am in a similar situation to you, so I can't claim to know the correct answer.  But I had many discussions with the CRA on the phone and spoke with several of their experts and to be honest none of them seemed to be really sure. 

For one of the NR4's I had one could find a box which somewhat corresponded even though box numbers different.  In the end the one agent suggested that since the correct amount of tax was withheld, I didn't need to re-enter these forms as if I were doing my taxes as a resident, so I removed them and simply attached a cover letter with my return and included the slips for completeness.  No idea if this was correct, but no one on the CRA side seemed to know any better.  In the end I will still have further tax obligations on the amounts in my country of residence.  For the statement of world income, as far as I understood it was more to see if any credits are applicable, but I don't think it impacted the next amount of income tax owed.  The one CRA agent I spoke with said I should for that statement of world income I should quote the income before withholding tax in all cases.

[JMSPENCER]

Thanks for your reply.  I started to use the tax pack from CRA, but oh boy after 3 hrs gave up - too many schedules referring to forms referring to your return - I'm an accountant and found it the most frustrating and inefficient form ever.  So what I've done is just entered my T4 details (all I had was a bonus because I actually left Canada in Dec 2021 but the bonus was paid in Feb 2022) and left it as that.  I'm relying on the CRA page under 'What is a section 217 election ' which says 'the tax withheld is usually your final tax obligation to Canada on this income and you do NOT have to file a Canadian income tax and benefit return to report it'.  From my understanding you can so a section 217 election if you think the tax withheld was wrong - but I know mine is correct.  So fingers crossed with my return.  Will post tmrw (26 April ) another frustrating thing why non-residents can't electronically file is ridiculous and belongs in the last century 😀

[RossS]

Where do I input NR4 amounts on a Non-resident return. The link on the subject but it is no longer valid.

[TurboTaxSusan]

@RossS 

You would enter the amounts on your NR4 based off of the codes and information on the NR4.

[RossS]

I cannot locate any T-Slip forms to enter. There are also no search results when using "Form Lookup"

[TurboTaxSusan]

@RossS What is the code on your NR4 slip?

[RossS]

I have codes for Boxes 14, 5, 16, 17, 24, 26 and 28