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Mark D
Mark D, Enrolled Agent
Category: Tax
Satisfied Customers: 1304
Experience:  MBA, EA, Specializing in Business and Individual Tax Returns and Issues
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I want to receive a bank wire transfer from a broker

Customer Question

I want to receive a bank wire transfer from a broker overseas,is it taxable?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: my broker want to wire my profits to my account in US here but it was freezed that I have to pay 15% tax before it can be credited into my account.Does it happen like that?
JA: Is there anything else important you think the Accountant should know?
Customer: that's is? it
Submitted: 8 months ago.
Category: Tax
Customer: replied 8 months ago.
Im in California
Expert:  Mark D replied 8 months ago.

Hello, as a US Person and CA resident, you are taxed on income worldwide. You will want to ensure you report all foreign brokerage activity on your US and CA taxes and file any applicable Foreign Asset forms (Forms FinCEN 114 and Form 8938). At the federal level, you may get a foreign tax credit for any foreign taxes paid on the same taxable income. I am assuming the 15% is being withheld at the source country level? If so, that tax would count towards the foreign tax credit. Please let me know if it is a US 15%.

Expert:  Mark D replied 8 months ago.

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