Have a Tax Question? Ask a Tax Expert
Thank you for contacting me about your Tax issue. I will work hard to help you understand the issue clearly.
If you are working for the UN, then yes, your income is not taxable to the US from that activity, but your investment income is
They brokerage will withhold 30% of your dividend and interest income without that W8-BEN
You will need to file a US Non-Resident return only if your income is over $600, I believe is the amount, OR if there are taxes withheld from your investment income.
The IRS Form 1040-NR would be due April 15 after the end of the tax year.
US Tax rates start as low as 10%, but go up to about 35% when income is sufficiently high.
Thanks, XXXXX XXXXX already submitted W-8BEN to some brokers and is in the process of submitting the rest. Assuming they all accepted w-8BEN from me, I understand they are going to return the withheld amounts and then I am liable to report my investment income myself, right?
Looks like the minimum income that is not taxed starts at $3900 if you are single.
Yes, if any amounts have been withheld you will need to file a return to get a refund.
I am married and we are both on G4visa. My estimation that the investment income will be higher than $3900.
And as far as I understand from a tel. conversation with one of the brokers, they are going to return the withheld amount of taxes directly to my brokerage account.
There is a $3900 exemption for each person on your tax return. Husband+Wife + one dependent means an exemption of $3900 x 3 = 11700 exempt income.
In 2013, this will probably be $4000 per person
I see. Assuming it is $4k per person, unless our investment income (cap.gains + div., right?) is less than $12K, we could not file a return or we have to file a return anyway, but no tax liability?
I meant we could skip filing a return?
If it was less than the exemption and you had no tax withheld then you do not need to file.
If EITHER is true--you had tax withheld OR you had more income than exemptions---you would need to file a tax return.
Is investment income is a sum of capital gains (or losses) plus dividends paid?
OR if your income fell under a treaty with another country, then also no tax return due.
Investment income includes capital gains, dividends and interest income.
I hope I have answered your tax questions today, Elena.