Vanguard Dividend Income

[CDNPatriot]

I received approximately $400 in dividend income from an assortment of Vanguard funds. Do I declare this on income tax? Or does it get reinvested into the fund and not taxed?

[cmackie]

Whether you reinvest or not, the dividend is treated as taxable income. You should receive a T-slip from the company holding your investments.

[pitz]

Yes, its all "ordinary income", taxed at full marginal rates.

You will be able to claim IRS withholding tax as a credit on your Canadian tax return.

You should have filed an IRS form W-8BEN with your broker specifying a lower level of withholding for Canadian citizens.

[ali1800]

Yes, its all "ordinary income", taxed at full marginal rates.

You will be able to claim IRS withholding tax as a credit on your Canadian tax return.

You should have filed an IRS form W-8BEN with your broker specifying a lower level of withholding for Canadian citizens.

Dividends from public corporations are taxed at a different rate (lower) than income/interest.

As well don't we as Canadians get a dividend credit because U.S. derived dividends are already taxed by the US?

[asdfvcx]

Dividends from public corporations are taxed at a different rate (lower) than income/interest.

Only from Canadian, not US companies. As already mentioned, dividends from US are treated as income.

As well don't we as Canadians get a dividend credit because U.S. derived dividends are already taxed by the US?

We get a credit, because the US government withholds a percentage when the dividend goes to a Canadian (as Pitz mentioned )

[ali1800]

Only from Canadian, not US companies. As already mentioned, dividends from US are treated as income.

We get a credit, because the US government withholds a percentage when the dividend goes to a Canadian (as Pitz mentioned )

Didn't know dividends from US were treated differently. Does this mean US DRIP's are still taxed?

[Paksis]

Didn't know dividends from US were treated differently. Does this mean US DRIP's are still taxed?

Still? Always have been.