Have a Canada NR4 with values in both line 1 and line 2. Line 2 doesn't have any non-resident tax withheld and has exemption code = S. Line 1 does have have non-resident tax withheld. Both lines 1 and 2 have some gross income. How to enter either of the lines into US 1040 tax return?
Enter your Canada NR4 (Income code 11) income in the section for US Social Security.
See @PatriciaR’s answer at How do I file NR4 (CAD) with income code of 11 for US taxes?
Enter your withholding as a foreign tax credit or deduction.
Where do I enter the foreign tax credit (Form 1116) or deduction?
Thank you @SundayInSalem . Where I'm confused is that BOTH Line 1 and Line 2 have a non-zero Gross Incomes on the NR4, but Line 2 doesn't have any non-resident tax witheld and has an Exemption Code = S. Do I still need to report BOTH Line 1 and Line 2 on US income tax return, or just Line 1 ?
I checked on https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4061/nr4-non-resident-tax-withholding-remitting-reporting.html#P1269_50798, and the definition of Exemption Code "S" is a bit unclear to me: