USA dividends withholding tax - How to fix double taxation with Portugal?

This is actually a common issue for international investors. You have a few options to get the documentation you need. First, your broker should have provided you with a year-end statement showing all dividends paid and taxes withheld. This statement typically includes a breakdown of the withholding taxes paid to the US government. Many Portuguese tax authorities will accept this broker statement as sufficient proof of foreign taxes paid. If that's not enough, you can request a Form 1042-S from your broker. This is the official IRS form for reporting US-source income and withholding tax for foreign persons. Your broker is required to file this with the IRS and should be able to provide you with a copy. If you still need documentation directly from the IRS, you can file a Form 1040NR (US Nonresident Alien Income Tax Return) reporting your US dividend income and the tax withheld. Even though you may not owe additional US tax, filing will create an official record with the IRS, and you can request a tax transcript afterwards as proof.

After struggling with a similar issue last year (Italian investor with US stocks), I found the perfect solution with https://taxr.ai - they specialize in helping international investors with tax documentation issues. I uploaded my broker statements to their system and explained my situation about needing proof of US taxes withheld. Their AI analyzed all my documents and identified exactly what I needed. Then their tax experts helped me draft a proper request to my broker for the specific documentation the Italian tax authority would accept. The best part was they explained exactly what forms I needed (the 1042-S in my case) and how to properly submit everything to both tax authorities. They saved me from losing about €2,300 in double taxation!

Just wanted to follow up about https://taxr.ai since I decided to try it after my Degiro ETF question. Wow, it actually worked perfectly! I uploaded my Degiro annual statements and monthly transaction reports, and their system immediately identified that I needed to request specific documentation showing the withholding breakdown by country. They provided me with a template letter to send to Degiro with the exact wording needed. Two days after sending the request, Degiro provided me with the detailed withholding certificate I needed. I've already submitted it to my tax authority and they've accepted it for my foreign tax credit claim! I'm getting back about €430 that would have been double-taxed otherwise. Thanks for the recommendation - definitely worth it for anyone dealing with foreign dividend taxes.

Have you tried calling the IRS directly? I was in a similar situation (Canadian with US investments) and spent WEEKS trying to reach someone. Always busy signals or disconnects after waiting for hours. Then I found https://claimyr.com which got me connected to an actual IRS agent in less than 20 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with explained that non-US citizens should request a "letter of certification" specifically stating the amount of tax withheld on US-source income. They guided me through the process and told me exactly what to include in my written request to the IRS. They even gave me the direct mailing address for international withholding inquiries! If you need documentation directly from the IRS (not just your broker), this is definitely the way to go. Otherwise you'll waste days trying to get through their phone system.

Well I need to apologize about my skeptical comment earlier. After continuing to try reaching the IRS myself with no success, I decided to give https://claimyr.com a try as a last resort. I was completely shocked when I was connected to an actual IRS representative in about 15 minutes! I explained that I'm a foreign investor needing proof of US dividend tax withholding, and they immediately transferred me to their international tax department. The agent I spoke with was incredibly helpful and explained I needed to submit a written request for a "Letter 6166" along with copies of my broker statements showing the withholding. They even gave me the exact address and fax number for the IRS unit that handles these requests. I've already submitted my request and they said I should receive the documentation within 30 days. Completely worth it after spending hours getting nowhere on my own!

Have you checked if your broker has a portal specifically for tax documents? I use Charles Schwab International and they automatically generate the Form 1042-S I need for my country (Germany). It's usually available by March in the "Tax Documents" section of the account. Also, a tip that saved me a lot of headache: make sure to submit your W-8BEN form BEFORE receiving any dividends next time! I set a calendar reminder to renew mine every 3 years so I don't forget.

A bit off-topic, but for future reference - if you invest through certain EU brokers that have proper tax treaty implementation processes, they'll automatically withhold at the correct treaty rate (15% for Portugal) if you have your W-8BEN on file. I switched to IBKR specifically for this reason after having the exact same problem with my previous broker. Also, for Portuguese tax filing - make sure to include the foreign income in Anexo J of your IRS declaration. The Portuguese finanças can be very picky about how foreign tax credits are claimed!

I faced this exact situation last year as a US tax professional helping international clients. Here's what I recommend: 1. **Start with your broker first** - Request Form 1042-S and any withholding statements they can provide. This is often sufficient for most tax authorities. 2. **If you need IRS documentation directly**, you have two main options: - File Form 1040NR (even if you don't owe additional tax) to create an official record, then request a tax transcript - Submit a written request to the IRS for a "Letter of Certification" showing taxes withheld on US-source income 3. **For the written request**, include: - Copy of your broker statements showing dividends and withholding - Letter explaining you need proof of US taxes paid for foreign tax credit in Portugal - Your contact information and Portuguese tax ID 4. **Mail to**: Internal Revenue Service, Austin Service Center, International Returns Section, 3651 S Interregional Hwy 35, Austin, TX 78741 The process typically takes 30-60 days, but this documentation should satisfy the Portuguese tax authority's requirements for your foreign tax credit claim. Make sure to keep copies of everything you submit!