A Canadian Citizen and resident, I have been told by the IRS that I can claim dependents (exemptions) on my IRA withdrawals (the fund origin being a 401(k) dating back to when I was a resident alien in the U.S.).
The CAN/AM agreed 15% tax rate is still applied, but the earnings base would be reduced. Unfortunately, form 1040NR does not lend itself to a flat 15% rate (unless I am missing something). Any clues? PUB 519 is a quagmire, and hasn't helped.
