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I am a US citizen living in the US. Years ago while working and living in Canada I purchased a life annuity from a Canadian insurance company. The company deducts 15% from my payments. I do not file a Canadian tax return. I declare the annuity payments as part of my worldwide income, on my 1040. Can I get any of the 15% back? It is about $3000 a year, significant to me. Can I use it as a tax credit on my 1040. I know there is S210 in the tax treaty and I could file a non resident T1 but I strive for simplicity if possible.
Pursuant to the Canada-US Tax Treaty, annuity payments are subject to a 15% withholding tax. To avoid double taxation, claim a foreign tax credit on your US 1040 return for the Canadian taxes deducted.