Yes I understand
No problem
The point is that it’s not wise to just add this extra info without explaining the whole concept of Level 1 and level 2 taxes. This has been discussed extensively in this forum.
I will see how to incorporate it somehow
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Assuming I am with IBKR UK, I understand that:
- I don’t need to fill out R-US 164 - because this is relevant for when you use a Swiss Broker not a foreign one
- If I have US-domiciled funds held at IBKR, I could potentially fill out DA-1 to reclaim the WHT.
Did I get that right?
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Correct.
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I’ve always filled out the DA-1, but I’ve never filled in the red box in the image. What’s this? Was I right to leave it blank?
Furthermore, I’ve always reported gross dividends on my return. I only received a portion of the 15% withholding tax back (between 50% and 75%). This appears to be due, as discussed in this forum, to the amount of the principal deductions that were accepted. However, it appears that the 15% amount is taxed twice: once as income and once as a result of the failure to fully reimburse via the DA-1.
Is my reasoning correct? What tax principle am I missing?
It’s to add information from additional sources.
My canton (ZH) uses their own DA-1 form. The red box is not even included in the DA-1 form of ZH.
If you declared everything on that one page (as you did in the example), yes, you are right to leave it blank.
I think you are correct. The full amount (750 in your example) is declared and taxed as income, regardless of how much you are reimbursed.
I have never compared income (Brutoertrag) from the tax software with the actual numbers in my broker account. Would be interesting to do this for UCITS funds to see if you are taxed on a higher income than what you receive in your broker account.