Author Topic: Canadian - File Nonresident Alien US taxes for $13 income?  (Read 416 times)


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Canadian - File Nonresident Alien US taxes for $13 income?
« on: March 31, 2022, 07:34:23 PM »
MMM Accountants or tax-savvy friends, please help!
My tax situation is usually very straight forward so I do our family taxes myself and have never had an issue. However, in 2021 my little hobby brought in $13.20 in US royalties and I was issued a 1042-S for $13 with $0 withheld.

According to my quick research: there are minimum income thresholds for US residents to file income tax but there is no minimum income for Canadians to file taxes as a nonresident. The withholding would be 30% ($3.96 in this case) plus according to Article XII of the Canada Tax Treaty, I would also owe 10% in Canada ($1.32). I have until June 15 to file the 1040-NR US Nonresident Alien Income Tax Return.

A few questions:
-I do not have an Individual Taxpayer Identification Number (ITIN). Do I need to apply for one to file US taxes? (How difficult is it to get one?)
-If I turn off the Royalty stream so this doesn't happen again in the future can I just ignore doing the taxes this year since it is such a small amount?

If it's not too rigorous to get a tax ID number and file, I'll keep up with the hobby and earning my little bit of royalties and of course file taxes as needed. But, if anyone with some experience has other things for me to consider please let me know.  I'm willing to turn off this income trickle and keep things simple for future years. Thanks for your help