How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Robin D. Your Own Question

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7363
Experience:  15years with H & R Block. Divisional leader, Instructor
14155347
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

i am not a US citizen nor do i have resedency in the US, i

Resolved Question:

i am not a US citizen nor do i have resedency in the US, i have been trading on line via a brokrage company that is based in the US and i received recently notification for tax filing from the IRS !! what should i do ?
Submitted: 2 years ago.
Category: Tax
Expert:  Robin D. replied 2 years ago.

Robin D :

Hello and thank you for using Just Answer,
Depending on the type of income, the brokerage account my be liable to withhold US tax even thoughyou are a non US person.
Generally, a foreign person is subject to U.S. tax on its U.S. source income. Most types of U.S. source income received by a foreign person are subject to U.S. tax of 30%. A reduced rate, including exemption, may apply if an Internal Revenue Code Section provides for a lower rate, or there is a tax treaty between the foreign person's country of residence and the United States (there is not a tax treaty at this time) . The tax is generally withheld (NRA withholding) from the payment made to the foreign person.
Interest and original issue discount that qualifies as portfolio interest is not subject to NRA withholding. A non resident alien will not be treated as engaged in a trade or business by trading US stocks or securities.


For U.S. nonresidents, dividend income received with respect to stock issued by a U.S. corporation is subject to a 30 percent.



When a nonresident sells investment stocks or securities at a gain, that gain is exempt from U.S. tax unless the foreign investor is an individual present in the U.S. at least 183 days during the year. The exemption applies equally to long-term (assets held for more than one year) capital gains and short-term capital gains. Losses from the sale of investment securities cannot be used by a nonresident to offset other types of income that are subject to U.S. tax.


As an exception to this general tax exemption, gains from the disposition of stock in companies with substantial U.S. real property holdings may be subject to U.S. tax


If you keep this account and you are receiving dividends they will be subject to withholding if you sale the stock, as long as you are not in the US for 183 days you will not be taxed on the gain.



 


 

Robin D :

The company may be requesting that you complete a W8 form, do this, because the company is required to have this on hand by US tax law.

Customer:

i was requested to submit a 1099 form, who can do this for me since i do not live in the US and dont know where or how to do this.

Robin D :

Do you mean a 1040NR?

Customer:

yes it is tax form 1040

Robin D :

Ok

Robin D :

You can use an online service (TurboTax, Taxslayer) their programs allow this

Robin D :

Would you like me to give you a link to the US 1040NR

Customer:

yes please.

Robin D :

One sec

Robin D :

Let me get you the instructions too

Customer:

thank you

Robin D :

You will be better prepared with all

Robin D :

Speak with the broker, sometimes they offer the service

Robin D :

I thnak you in advance for a positive rating

Customer:

my broker just gave me the last 3 years of trading info

Customer:

and that is it

Robin D :

If you were not in the US you are not required to pay tax on the sales.

Robin D :

If they paid you dividends, they should have withheld

Customer:

ok

Customer:

got it

Customer:

thank you very much

Customer:

this is great

Robin D :

Best wishes

Customer:

take care

Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7363
Experience: 15years with H & R Block. Divisional leader, Instructor
Robin D. and 5 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.