Investing

Got a dividend, got a W-8BEN form in the mail. Now what?

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  • Dec 30th, 2019 1:31 pm
[OP]
Sr. Member
Jun 27, 2012
913 posts
99 upvotes
Winnipeg, MB

Got a dividend, got a W-8BEN form in the mail. Now what?

It was sent months ago and I forgot who sent it. There's nothing stamped or anything else who sent it or where I'm supposed to submit or when its due. So informative!
My broker seems to have no recollection of sending it which was strange. Could it have been sent by the company itself? It was a partnership so the withholding tax the IRS took was big. Does anyone know the purpose of this? I had no capital gains for 2019 so I thought it odd that I have to pay income tax on what little I received which will be under my personal exemption. But as its US do they care? They also sent instructions for it whose line numbers don't even correspond to the form. Kind of makes me wish I'd just kept my money in Canada.
2 replies
Deal Fanatic
Apr 25, 2006
7605 posts
2630 upvotes
It's probably sent by your broker and not the company itself.

You got dinged with 30% withholding because you didn't submit this form.

You can claim 15% on dividends and 0% on interest under special treaty rates.

You should submit the form to your broker so they have it on record when they do US tax reporting. Else, you'll forever be undocumented for FATCA reporting.
"If you make a mistake but then change your ways, it is like never having made a mistake at all" - Confucius
Deal Fanatic
User avatar
Dec 14, 2010
6736 posts
8618 upvotes
redflagguy2u wrote: It was sent months ago and I forgot who sent it. There's nothing stamped or anything else who sent it or where I'm supposed to submit or when its due. So informative!
My broker seems to have no recollection of sending it which was strange. Could it have been sent by the company itself? It was a partnership so the withholding tax the IRS took was big. Does anyone know the purpose of this? I had no capital gains for 2019 so I thought it odd that I have to pay income tax on what little I received which will be under my personal exemption. But as its US do they care? They also sent instructions for it whose line numbers don't even correspond to the form. Kind of makes me wish I'd just kept my money in Canada.
This is to allow you to recover some of the withhold tax that got charged with your US security.

This should help: https://www.freshbooks.com/blog/w-8ben-form-canada-tax


Rod
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