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    Does Non-US citizens have to pay taxes in United states for Capital gains from Trading options ,forex &Futures?
    Hello, 1. I am NOT US citizen or Green card Holder 2.I HAVE NOT Lived in United States for 182 or more days in a particular year. 3.I am Indian citizen and Resident But, I am trading Options, Futures , forex in US markets using US brokerages.Also, I signed the W-8BEN form with the Brokerage. Do I need to pay taxes for my capital gains from trading futures ,options ( NOT INTEREST EARNING SECURITIES like bonds or dividends ) to the IRS , united states??? I am NOT talking about paying tax in my Home country.I know, I need to pay tax in India. But, Do I need to pay taxes in United states??? Thank you.
    7 months ago 4 Answers

    Best Answer

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    The tax implications for a foreign investor will depend on whether that person is classified as a resident alien or a non-resident alien. To be considered a non-resident alien, a person must meet several guidelines. First of all, the person cannot have had a green card at any time during the relevant tax reporting period and cannot have resided in the U.S. for more than 183 days in the past three years, including the current reporting period. However, non-U.S. citizens who hold green cards and have been in the U.S. for more than 183 days are classified as resident aliens for tax purposes and are subject to different guidelines than non-resident aliens. If you fall under the non-resident alien category and the only business you have in the U.S. is in investments (stocks, mutual funds, commodities) within a U.S. dollar-denominated brokerage firm or other agent, you are subject to the following tax guidelines. In terms of capital gains, non-resident aliens are subject to no U.S. capital gains tax, and no money will be withheld by the brokerage firm. This does not mean, however, that you can trade tax free - you will likely need to pay capital gains tax in your country of origin. In terms of dividends, non-resident aliens face a dividend tax rate of 30% on dividends paid out by U.S. companies. However, they are excluded from this tax if the dividends are paid by foreign companies or are interest-related dividends or short-term capital gain dividends. This 30% rate can also be lower depending on the treaty between your home country and the U.S., so it is important that you contact your brokerage firm to verify the rate. If you are a resident alien and hold a green card or satisfy the resident rules (183 days), you are subject to the same tax rules as any U.S. citizen.
    a few seconds ago

    Other Answers

    • hi you have to pay ! how is ur trading going ? i have been in fx from 8 years .somehow i making good profits.i think with a good trading platform we can increase success rate in fx .here my favorite fx platforms that most traders use ---------------------------- forexplatformslist.com ---------------------------- good luck

      by ? - a day ago

    • and if taxes are withheld at the source you probably would want to file your US return(non resident alien) in case you are not liable for that amount and might be due a refund

      by tro - a day ago

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