I received dividends from my company in May 2024. This company is based out of Germany. My account in Computershare is showing that some of it was taken away for backup withholding. I haven't received anything from the IRS saying that I am subject to this. Is backup withholding normally withheld for foreign dividends? How can I get this money back?
@gloriamer , from what you have posted, my understanding :
(a) You a US person ( citizen/GreenCard / Resident for Tax purposes ) being taxed by the US on world income;
(b) I don't know whether your tax home is US or not but certainly Germany is not -- that is because you are talking only about Dividend income being taxed at source. Thus there is no recovery ( i.e. no way to get Germany to " Not Tax" German sourced income.
(c) US-German Tax Treaty does not provide any direct benefit. However , because of the Double Taxation clause, you would be able to get substantial mitigation of the double bite / taxation on the same income.
(d) Note that when you file US return and you declare your German sourced dividend income and the taxes thereon ( by German Taxing Authority ), you may be able to use the "Safe Harbor" ---- US$300 foreign tax on passive income per filer --- to get full refund of the tax ( this is non-refundable i.e. it can only reduce your US tax burden but not below zero ).
Does this make sense ? Is there more can do for you ?