Lux Investing
For non-resident F-1 investing in stocks with US earned income, tax is flat 30% or graduated rates apply?
Yeah stocks give capital gain. What I meant was stock trading capital was acquired with US based earnings, so source of income with which stock trading was initiated is earned in USA. So does this change equation or still capital gains are non-effectively linked with US trade? What if I had capital loss?
Public Comments
- Assuming you are filing as a non-resident alien: First off, you seem confused. Stocks do not have earned income, they produce dividend and capital gain income. If your country does not have a tax treaty with the US which assigns a different tax rate to this income, the tax rate is 30%. However, qualified dividends and capital gains (defined on p.20 of Publ. 550) are taxed at 15%. See the instructions for line 10b and the worksheet on page 18 of the 1040NR instructions. Your 1099-DIV will identify whether the dividends are qualified or not.
