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Recent Treaties questions

Robin, At the moment I have an issue with a US client who is

Hello Robin,At the moment I have an issue with a US client who is withholding 30% of payments to me.They believe that this is necessary because there is no tax treaty between the U.S. and the U.A.E. and because my W-8BEN-E form is incomplete (Part III). I'm quoting their communication:- "Since we do not have a treaty with UAE, it is our understanding that we need to withhold 30% of your payment."- "...they are recommending we withhold the 30% per the Chapter 3 withholding requirements and file an annual Form 1042 and 1042-S to report the withholding amounts."- "...they are not seeing the Part III completed on the W-8BEN-E that would indicate we would not have to withhold taxes. They confirmed without that section completed we need to withhold the 30%."I have submitted a W-8BEN-E form to them where I left Part III blank on purpose (withholding exemptions).I understand their thinking that they have to withhold since the withholding exemption part is left blank.Do you have any advice what to explain to them? I would like to convince them to release the payment in full and to not file 1042/1042-S forms.(I guess they don't understand that my business is not subject to US tax and withholding in first place since it's not US source income)Best Regards,Benedikt

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Robin D.

Vocational, Technical or Trade School

24,128 satisfied customers
Where do I record the Canadian Social Security Income in the

Where do I record the Canadian Social Security Income in the US 1040 tax return? Is it in the same section as US Social security? It's not taxed as ordinary income.?I'm a US Citizen living in the US. Or do I record it as foreign income?

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Dr. Fiona Chen

President

Ph.D.

928 satisfied customers
I have a client who has a mother overseas. She has a card

I have a client who has a mother overseas. She has a green card and SS Number. He provides for her but she lived all year long overseas. I am not sure if he can take her as a dependent. Can someone clarify?

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Robin D.

Vocational, Technical or Trade School

24,128 satisfied customers
III of the W8BENE which boxes do we need to check? the money

Hi, For Part III of the W8BENE which boxes do we need to check? the money is sponsorship for video content we produce on youtube.Thanks

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Robin D.

Vocational, Technical or Trade School

24,128 satisfied customers
Thanks for you help in the past, Arthur. I am a dual

Thanks for you help in the past, Arthur. I am a dual resident and dual citizen of US/ Canada. My retirement income is predominantly Canadian and taxes are withdrawn and paid in Canada. In filling out my US 1040, my hypothetical income and the 1040 line I think is appropriate is as follows:Line 15a Withdrawals from my Candian RRSP's (RIF & LIF) $15,000Line 16a Canadian employer pension $5,000Line 20a Canadian Federal Social Security: $20,000Line 20a US Soc Sec $4,000 (combined with Canadian= $24,000)Line 48/ Form 1116 I take my credit for Federal/ Provincial Canadian taxes paid herePlease advise if this is correct, or if I should use a different 1040 line for a particular item(s).Thank You,Marshall Arlin

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Arthur Rubin

Doctoral Degree

1,790 satisfied customers
I bought a time sharing in Florida 6 years ago. They sent me

My name is ***** ***** I bought a time sharing in Florida 6 years ago. They sent me a w-8ben form to fill. I never heard about tax treaties and I can't find if Brazil and US have one. I don't know if I can have any benefits from a possible treaty between them.JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: I'm Brazilian and my permanent residency is here in Brazil.

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Robin D.

Vocational, Technical or Trade School

24,128 satisfied customers
I am preparing a 1042-S for a Canadian recipient subject to

I am preparing a 1042-S for a Canadian recipient subject to 10% withholding tax. I understand I need to enter a 0% tax rate in box 4b per these IRS form instructions: Enter the tax rate using the following format: two digits, a decimal, and twodigits (for example,“30.00” for 30%). However, if the income is exempt from tax under a U.S. tax treaty or the Code, enter “00.00.” If the tax rate is less than 10%, enter a zero before the tax rate (for example, “04.00” for 4%).Given this requirement, what is the correct exemption code for box 4a?

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Lev

Retired

Bachelor's Degree Equivalent

24,864 satisfied customers
Do u assist US citizens in Australia OR Australian citizens

do u assist US citizens in Australia OR Australian citizens in the USJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I am an Australian citizen temporarily working the US and need to file for 2016. Need to know how to determine my residency for tax purposes and what needs to be declared. I am employed and receive a wage in USA, but own property in Australian receiving rent, as well as hold Superannuation (retirement accts)JA: Is there anything else the Accountant should be aware of?Customer: I will be returning to Australia Oct 2017 u did that b4 but it wanted 38 dollars

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Robin D.

Vocational, Technical or Trade School

24,128 satisfied customers
I have a question regarding tax treaties. I am a citizen of

Hi Pearl! I have a question regarding tax treaties. I am a citizen of Bulgaria and as such am eligible for tax exemption for up to 2 years. However, last year I changed my status from J-1 to H1-B. Now I am trying to prepare my tax return throug a software (sprintax) and it says that I owe all the taxes from the H1-B period.JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: I have been in the US since Sept. 2015. That's it, I guess.

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Robin D.

Vocational, Technical or Trade School

24,128 satisfied customers
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