Hello all.
In 2019 I received a small amount of dividend payment from US shares I own - total amount received was about $250. I have paid US withholding tax on this income, but no Irish tax. I searched here for previous posts on paying Irish tax on US dividends and I think I now know what I have to do. But I would appreciate if someone who is more experienced than I could confirm what I say below. And I do have a couple of questions that I couldn't find answers to.
My understanding of what I have to do is the following:
In 2019 I received a small amount of dividend payment from US shares I own - total amount received was about $250. I have paid US withholding tax on this income, but no Irish tax. I searched here for previous posts on paying Irish tax on US dividends and I think I now know what I have to do. But I would appreciate if someone who is more experienced than I could confirm what I say below. And I do have a couple of questions that I couldn't find answers to.
My understanding of what I have to do is the following:
- Login to myAccount on Revenue.ie
- Open "Review your tax 2019" i.e. to submit my tax return for 2019
- In the "Non-PAYE income" section open Dividends and then select "US Dividends"
- Enter the total amount of US dividends received, converted to Euro i.e. $250 converted to Euro, I don't deduct the 15% US tax already paid, Revenue will automatically do that.
- Complete the rest of the form and save it.
- Done! Or am I? Is the above correct or is there any step missing?
- Should I have paid the tax back in 2019 when I received the dividends? Will Revenue stick me with late payment charge?
- How do I now pay the tax i.e. do I transfer any money to revenue or do revenue simply include this as a negative when they calculate my tax credits for next year?
- How do I determine what exchange rate to use for converting dollars to euros?
- In the "Tax credits & reliefs" section of the form, under "Add tax credits", "Other Credits" there is an option to add "Irish Tax Deducted On Foreign Dividends". But I assume in my case I do not enter anything here as I have not actually paid any Irish tax on the dividend income yet?