So in a post I did several days ago about the ROC portion of the 15% withholding Tax on US CC ETF distributions being exempt from from the Tax. There was a lot of valuable discussions within my post about if this was true, and if so, who of you are seeing your Broker paying back this ROC portion that should not have been taxed. Some of you said you didn't see your broker paying back any of the 15% withholding tax that should not have been collected. A couple of you said you did see your broker pay it back but it was not until March of the following year. I said I would be calling my Broker RBC DI to ask if they are paying back my ROC portion and if so, HOW? Great News for me - RBC DI is paying back a refund of the 15% withhold tax on my TFSAs that they over collected! :) It took my 15 minutes to first explain to the support rep what I was talking about. I used my CONY etf in my TFSA as an example. I showed him how Yieldmax provides tax supplementals to break down how much of each of their ETF distributions was ROC vs Regular Income. LOL - first he said "doesn't that sound too good to be true?". I said yeah initially it does but thats the US and Canada Tax rules on the 15% withholding - ROC is Exempt. Then as he was looking at my TFSA account, he noticed on his system that in MARCH 2025, RBC DI paid back the ROC portion of EACH US CC ETF for EACH 2024 distribution received. It was over 3 pages of CREDITS paid back into my account. What was confusing and why I didn't notice it was because it was not in my online account activity. It was ONLY reported in my monthly Statement. I wished it would be reported online as well. But just to show you all that they actually are returning / refunding the ROC... here is a clip of just a few of these refunds from my actual MARCH statement. So, my post a few days ago was correct. Of the 15% of the US CC ETF collected taxes in my TFSAs, the ROC is exempt from the tax. And since the ROC % is different on each distribution for each US CC ETF... it seems the Broker waits for the entire Calendar year to close. Then their system figures out all the credits - and pays back what was over-collected. All of you should be confirming with your Brokerages if and how they are paying you back on your TFSA held US CC ETFs taxes. Since most distributions are like 80% or more ROC, this could be a big refund coming back to you. Hope this helps you all.
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224 Comments
Andy Archamb
@yyzstocks · 1yr
Anyone with Wealthsimple that has been incorrectly deducted 15% withholding taxes on ROC "NEED to" contact them asap and request a refund. Doesn't sound like they'll correct their system (they're pocketing this money as the IRS does NOT Collect those from ROC so that money stays with them)
Marine
@marine · 1yr
This is a great post @perryf . I just sent WS an inqury. On both TSFA and none registered. I Will wait for reply and post it here. What is the word… knowledge is wealth! 💪
Andy Passive Income
@AndyPii · 1yr
And once again, your friend Andy was right 😂😂😂 cheers amigo 🥳🍻
Andy Archamb
@yyzstocks · 1yr
I'm SO glad I always had a column in my dividend payment spreadsheets that indicated the exact amount they kept of the 15% withholding taxes on my $YMAX$YMAG$CONY and $MRNY in my non reg accounts. Now... got the usual Wealthsimple scripted reply... "we're looking into it and we'll get back to you"! NO... just deposit the money so I can reinvest it LMAO 🤣
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