View Full Version : Vanguard Dividend Income
CDNPatriot
Feb 19th, 2008, 06:50 PM
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
Feb 19th, 2008, 07:39 PM
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
Feb 22nd, 2008, 12:48 AM
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
Feb 23rd, 2008, 10:09 PM
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
Feb 23rd, 2008, 10:16 PM
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
Feb 24th, 2008, 09:15 AM
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
Feb 24th, 2008, 10:55 AM
Didn't know dividends from US were treated differently. Does this mean US DRIP's are still taxed?
Still? Always have been.