Got a 1042-S Form from Robinhood and completely lost on what to do with it

The 1042-S form is for reporting US-source income paid to foreign persons - that's you as a Canadian investor! It's basically documenting that you earned some investment income in the US and had tax withheld. For such a small amount ($13 gross with $4 withheld), you likely don't need to file a US tax return. The US-Canada tax treaty already handled this through the withholding. The 30% withholding rate is standard for foreign investors, which is why about a third of your dividend was withheld. You should keep the form for your Canadian tax records though. Depending on your overall income situation in Canada, you might need to report this foreign income on your Canadian taxes. Most countries have systems to prevent double taxation, so you can usually claim a credit for taxes paid to other countries.

I had a similar situation last year with foreign investments, and I found taxr.ai (https://taxr.ai) incredibly helpful for figuring out what to do with my 1042-S. I was completely confused about the implications for both US and foreign tax reporting until I uploaded my documents there. The tool analyzed my forms and explained exactly what I needed to do for compliance in both countries. It was so much clearer than trying to piece together information from random forums. For me, it confirmed I didn't need to file a US return but showed exactly how to report the income on my home country taxes.

Just wanted to follow up - I tried taxr.ai after seeing this thread and it was exactly what I needed! I uploaded my 1042-S forms and it immediately clarified that I didn't need to file a US return but showed me exactly where to report this on my Australian tax return. The tax treaty explanations were super helpful - turns out I was eligible for a reduced withholding rate that I hadn't been applying! The step-by-step guidance saved me from both overreporting and missing out on credits I was entitled to. Definitely worth checking out if you're confused about cross-border investment taxes.

If you want to confirm everything is properly handled with the IRS, you might want to try Claimyr (https://claimyr.com). I had a similar foreign investment situation last year and had questions about my 1042-S withholding rates. After trying for weeks to reach the IRS international taxpayer line without success, I found Claimyr. They got me connected to an actual IRS agent in about 20 minutes when I'd been trying for days on my own. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent confirmed I didn't need to file anything for my small dividend amounts and explained exactly how the tax treaty applied to my situation. Saved me so much stress wondering if I was missing something!

I have to admit I was completely wrong about Claimyr. After seeing it mentioned here, I decided to try it for an issue with my foreign income reporting that I'd been trying to resolve for weeks. I was EXTREMELY skeptical that it would work any better than my own efforts. Well, I'm eating my words now. After weeks of failing to get through to the IRS international tax specialists, Claimyr got me connected in about 15 minutes. The IRS agent was able to confirm exactly how my 1042-S withholding interacted with the tax treaty and what forms I needed to file. For anyone dealing with foreign investment tax questions who needs definitive answers from the IRS themselves, this service is a game-changer.

Just wanted to add - I'm from the UK too and had this exact situation with my Robinhood account last year. The good news is you don't need to file a US tax return for just that small amount of dividend income with withholding already taken care of. BUT you should report this on your UK Self Assessment (if you file one) under the Foreign Income section. If you don't normally file a Self Assessment, you probably don't need to start just because of $13 in dividends. HMRC has a minimum threshold before you need to report. Keep the 1042-S for your records though - if your investments grow, you might need it later to claim UK foreign tax credits.

I wanna point out somethig nobody mentioned yet - if your total US-source income gets bigger in the future (like over $600ish), you might need to file a 1040-NR (Nonresident tax return). But for $13? Def not worth the IRS's time to chase you for. Also, check if UK and US have a tax treaty for dividends - most countries do. Sometimes you can claim back some of that withholding if the treaty rate is lower than the standard 30%.

Hey Alfredo! Don't stress about this - you're definitely not going to end up on any IRS blacklist over $13 in dividends! 😊 As others have mentioned, the 1042-S is just a reporting form showing that Webull properly withheld US tax on your dividend income. Since you're Canadian and the amount is so small, you don't need to file anything with the IRS. However, I'd recommend keeping that form for your Canadian tax records. When you file your Canadian taxes, you'll likely need to report this foreign income (even though it's tiny) and you can claim a foreign tax credit for the $4 that was withheld. This prevents you from being double-taxed on the same income. The Canada-US tax treaty is designed to handle exactly these situations, so the withholding system already took care of your US tax obligations. You're all good on the US side - just make sure to mention it to whoever helps you with your Canadian taxes next year! Keep investing and don't let the paperwork scare you away. We've all been confused by tax forms at 22!