How to File an NR4 on a US Tax Form

The NR4 slip is a form required by the Canada Revenue Agency (CRA) to report amounts paid or credited to non-Canadian residents. To report this information to the IRS, U.S. residents must record the information found on an NR4 on IRS Form 8891.

An NR4 slip is a Canadian tax slip filled out by an employer for every non-Canadian resident they paid or credited a certain amount to throughout the year. According to the writers of the Canadian government's official site, employers must fill out an NR4 slip regardless of whether they withheld any taxes from the amounts paid or credited, provided they meet the requirements set by the reporting limit.

As with many tax forms, the NR4 has reporting limits that determine whether the NR4 slip is necessary. According to the NR4 instructions, the reporting limit is ​$50​, meaning you must fill out the NR4 slip if you paid or credited the recipient for ​$50 or more​, regardless of whether taxes were withheld or not. Any amount ​less than $50​ with no taxes withheld does not require an NR4 slip. However, amounts ​less than $50​ paid or credited with taxes withheld must be reported on an NR4, even though the recipient was paid or credited an amount lower than the reporting limit.

When filling out an NR4 slip, all income and currency amounts must be reported in Canadian funds, using the Canadian dollar. When filling out an NR4 slip, as with all tax forms, it's essential that the information reported is accurate. Several codes are needed to fill out an NR4 slip. These codes, which you can find in the NR4 instructions, are the recipient codes, country code for tax purposes, Form NR4 income codes, currency code, exemption code and the country code. You will also need to know the payer or agent identification number and the foreign or Canadian tax identification number.

According to the Canadian government's official site, individuals and corporations report income based on the calendar year in the gross income and non-resident tax withheld sections. Conversely, estates and trusts report income based on the fiscal year-end. When you reach the gross income section, be sure to include gross rental income and gross income for acting services, the latter of which is reserved for film industry payers and only filled out when applicable.

According to the Internal Revenue Service (IRS) experts, U.S. residents or citizens should use IRS Form 8891 to report contributions made to Canadian registered retirement savings plans (RRSPs) and registered retirement income funds (RRIFs). Form 8891 is also required for individuals who need to report undistributed earnings in RRSPs and RRIFs and distributions received from RRSPs and RRIFs. You can also use the form to defer U.S. income tax on accrued income earned by an RRSP or RRIF as long as it has not been distributed.

Individuals must fill out Form 8891 for every year they receive a distribution from the RRSP or RRIF. Upon completing Form 8891, it must be attached to a completed Form 1040. Otherwise, tax regulators will consider the form improperly filed and they may subject you to penalties.

To fill out an IRS Form 8891, one must indicate whether they are a beneficiary or annuitant. According to the IRS, a beneficiary is an individual subject to taxation on income accrued in the RRSP or RRIF, while an annuitant is an individual who is designated pursuant to the RRSP or RRIF.

​Consider also:​ How to Report RRSP on a U.S. Tax Return