Once a quarter I receive dividend income on US ETFs I'm holding, of which 15% is automatically withheld thanks to Form W-8BEN. For the withholdings to be "deemed to have been paid" as tax (https://www.ato.gov.au/forms-and-instructions/foreign-income-tax-offset-rules-guide-2022/when-a-foreign-income-tax-offset-applies), do I need to wait for:
- Form 1042-S to be delivered, showing "federal tax withheld"/"total withholding credit";
- To manually file US taxes for the Jan-Dec 2025 year;
- I don't need to wait, and can reference the monthly statements from my US trading platform?
In the first two cases, I would be able to report Jul-Dec 2024 under foreign income tax offset, but would need to come back next year to amend the return for Jan-Jun 2025. In the third case, I would be able to list all of Jul'24-Jun'25 immediately.
Also, what is the foreign translation basis on US dividend withholdings? Is it the end/start of the year, whenever I receive a Form 1042-S, or the date(s) on which I received dividend income (i.e. the events from which the withholdings are derived)?
240 views
2 replies