Copyrights from United States

Hello Mr. Godbout,

I have received a Form 1042-S for copyrights received from United States, enclosed.

Question: should I file a US tax return or include it in my Canadian return as foreign income?

I searched on the U.S. taxation website and I understand nothing …

Thank you,


Hello Ms. XXX,

copyrights are not taxable in the United States under paragraph XII 3a) of the Canada – United States tax treaty .

You will need to file a US tax return to claim the tax withheld ($ 4,438).
You should also report this income in your Canadian income tax return and you cannot claim a foreign tax credit since these amounts are not taxable in the US.

In the future, you should instead provide a form to the payer so it does not withhold any tax on future payments. This will allow you to receive the amounts without US withholding and therefore you will not need to file a tax return to get back the tax withheld in the USA.

For 2014, it is too late to provide this form, you have to file a US return.

Note that we are available to help you in all these steps, it is part of our expertise.

Let me know if that answers your question.

Have a good day!

Nicolas Godbout, M. Fisc., Fin. Pl.
Tax master & Financial planner
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