My brokerage is TRP. I don't suppose it makes any difference, though.
Im in a
no tax due bracket every year on the 1040.
I own
Norsk Hydro via the ADR: NHYDY. Here comes a dividend. Great! A few days later: here comes notice that foreign tax was withheld
at the source. AND a
fee, originating
at the source. I hope there's a way on the lovely tax form to recoup that foreign tax paid.
TRP offers no-fee transactions if you do it all yourself, online. But, wait: you'll still take it in the shorts some way or another. When I first began to buy single stocks, I tracked a Canadian energy outfit, beforehand: Parkland. When I wanted to buy shares, there was a FEE. At least it was noted before purchase. Our yogibearbull alerted me as to why: the security could be bought in the States only with an "F" suffix. A "Y" suffix would involve NO FEE. Which is why I bought
NHYDY.
.......Pig farts! I love being ambushed, don't you all, too?
(It's not your fault,
@yogibearbull. You were just looking out for me. Thanks.)
Comments
$PFE Pfizer
$COST Costco
$WBA Walgreens
$CVS CVS Health
$DG Dollar General
$NEE NextEra Energy
$PG Procter & Gamble
$LMT Lockheed Martin
$WM Waste Management
$UNH UnitedHealth Group
$AWK American Water Works
Or add vanguard div etf $VYM
Or VNQ
on Friday before the week-end, by +8.87% in a single day. You can bet the shorts will play with that one, when Monday comes. (And I ask: why didn't you do that already, Joe???????).
https://www.cnbc.com/2022/10/13/biden-administration-may-block-russian-aluminum-imports.html
*Edit: oops, today's Thurs, not Friday. I've been a bit "under the weather."
No Vanguard for me. Just read the reports here at MFO of stinky customer service.
I've got my lineup pretty well figured out, by now. Looking to add just one of the big Canadian banks. CM looks most likely.
https://www.marketwatch.com/story/h2-green-steel-hydro-havrand-explore-developing-green-hydrogen-production-facilities-271665645632?mod=mw_quote_news
"More specifically, the Canadian tax authority, which is called the Canada Revenue Agency, generally withholds 30% of all dividends paid to out-of-country investors. Fortunately, this 30% is reduced to 15% thanks to a tax treaty shared by Canada and the United States."
"...Canada has its own form that can be submitted to request a refund of withholding tax..."
Hmmmmm. Your question was timely, Derf. Now, I must decide whether the rock-solid reliability of Canadian banks is worth that cost. I have no doubt that my tax guy knows what to do in order to retrieve any Canadian tax refund I might be due.
Does anyone know more about this issue? There are AMT-free muni funds too and I can switch to those. Is that the issue, or something else? The amount denied isn't large enough to hire a lawyer.
BTW, as I had paid my taxes due via IRS Direct Pay, so this IRS letter was the only indication for me that my 2021 tax return (paper filing!) was finally processed.
BTW2, I was able to login to my IRS Direct Pay with my old credentials and the new IDme is just optional. I knew its implementation was delayed/suspended but I now got verification.
What will you do differently in your 2022 tax filing in order to avoid this foreign tax credit issue? I have been filing electronically for many years and have no issue.