Tax Reporting: Canadian Tax Forms
As a Canadian resident, you may receive:
- A form T5008 statement of your securities transactions.
- If you received distributions from trust units, you will receive Form(s) T3.
- If you received dividends or interest, you will receive Form T5.
- Québec residents may also receive RL-3, R-16, and RL-18.
- Non-residents of Canada who receive dividends and/or interest from Canadian securities may receive a Form NR4.
You will also need your annual statement (available mid-February) to calculate your capital gains/losses.
In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.
Non-US Persons and Entities: What statements does IBKR offer at the end of the year?
For all clients IBKR provides an Annual Statement and a Dividend Report. Your Annual Statement shows trade detail for your account gain and loss on a First In, First Out (FIFO) matching basis or the specific method of tax accounting selected for your account. Your Dividend Report shows account detail for all dividends, and payments in lieu of dividends, as well as withholding on these amounts.
For further explanations of these statements on the IBKR website click the Products > Tax Information and Reporting link and refer to the Non-US Persons and Entities tab. Your statements are accessible from our website by logging in to Client Portal and accessing the Reports > Tax menu option.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Non-US Persons and Entities: If a new tax treaty is approved, when will IBKR apply revised treaty rates to my securities transactions?
IBKR will update and apply new tax treaty rates as they are effective. However, be aware that there is often a delay between the announcement of new tax treaties and the effective date for withholding changes by brokers. Until the effective date, IBKR must continue to withhold at the existing statutory rate (or old treaty rate).
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax: Non-US Persons and Entities: Refunds of Tax Withheld
In general, amounts withheld for US taxes are non-refundable. However, under certain circumstances, such as an incorrect rate being applied to withhold tax, a refund can be obtained. If you are an individual, file either Form 1040NR, "US Nonresident Alien Income Tax Return" or 1040NR-EZ "U.S. Income Tax Return for Certain Non-Resident Aliens with No Dependents" to obtain a refund. There are similar US forms for trusts and corporations. IRS Publication 515 "Withholding of Tax on Non-Resident Aliens and Foreign Entities" and IRS Publication 519, "US Tax Guide for Aliens", available free at www.IRS.gov/formspubs provide more information on this subject.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax: Non-US Persons and Entities: Amended Form 1042-S
We may need to amend and re-issue 1042-S forms as additional information becomes available to us. For example, an amended Form 1042-S will be issued to reflect the late announcement by an investment fund that fund units have been reclassified. If we do revise your Form 1042-S, you will receive email notification that there has been a change. A revised form will be posted in Client Portal and resubmitted to the IRS. Consult your tax advisor for further guidance.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax: Non-US Persons and Entities: My Form 1042-S is Incorrect
If your name, address or US Taxpayer Identification Number or other information on Form 1042-S is incorrect, log in to Client Portal and:
- Click Support.
- Click Tax Form Correction to open the tax correction form.
- Select the tax year for which you wish to report a correction from tax year list.
- Select your taxpayer status from the drop-down (US Taxpayer, Canadian Taxpayer, Non-US Taxpayer).
- All available tax forms for your selected taxpayer status will display in the Type of Correction section. Click the tax form you would like to correct to review and correct the form.
- Make your corrections to the tax form.
- Click Submit when you have completed your corrections to the tax form.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax: Non-US Persons and Entities: What to do if your Form 1042-S is not posted in Client Portal
If you are missing a 1042-S, verify that you received interest, dividends or substitute payments in lieu from US sources in the previous year.
Once you have reviewed your account activity for the previous tax year and determined that you should have received a Form 1042-S for an account, please contact our Client Service department with specific transaction details, including the name of the security, number of shares/contracts and trade dates. We will research the issue and advise you once we have concluded our investigation.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax: Non-US Persons and Entities: Availability of Form 1042-S
Forms 1042-S are generally made available by March 15 for the previous calendar year.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax: Non-US Persons and Entities: Form 1042-S
Form 1042-S reports US source income earned by non-US persons subject to US withholding tax, including interest, dividends, substitute payments in lieu and fees earned (paid to and for account managers) on your account for the year. You may receive multiple 1042-S forms reporting different types of income. This information is also reported to the IRS. Each type of income is reported on a separate form using a code in Box 1. Common codes are:
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax: Non-US Persons and Entities: How to Access Tax Forms
Your tax forms, including Form 1042-S, Annual Activity Statement and Dividend Report, are available in electronic format. To access forms, log in to Client Portal and click the Reports > Tax menu item. Please review the information on your forms.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
