Thank you for the clarification. I've received more (contradictory) news from Fidelity about reporting my options transaction. I have been told that I'll receive a grantor letter stating my transaction list for the tax year 2022 in the 2nd week of April (which is already pretty late). Then someone else from Fidelity told me that I will not receive that letter so I don't know whom to believe.
The person who said that I will be receiving a grantor letter said that I can use my year-ending statement to file taxes if I don't want to wait for the letter. The other person who said I won't receive a grantor letter said that since I'm considered a foreign person, I don't need to pay taxes on stock transactions (which seems unbelievable). She didn't have an answer as to why the tax was withheld in this transaction and I need to talk to someone else about it.
The transaction in question is this:
- Sold a call contract on 08/24 and received a premium of $22.31
- From this amount, a $5.35 tax was withheld (at a rate of 24% I believe). The rest of the amount was transferred to the cash part of my portfolio
- I bought back the contract on 08/26 for $4.03 and made a net profit of $18.28
This transaction isn't reflected on the 1042-S.
My questions are these:
- What is a grantor letter in this case and does it apply to me? If it does and I receive it, how do I use it to file taxes on TurboTax premium?
- Can I use my statement for the month of August to file this stock transaction myself? I tried adding the transaction without a 1099-B on TurboTax with a cost basis of $4.03 and gross proceeds of $22.31. The sale date was 08/26 and the buy date was 08/24. I indicated it as a Short Term covered transaction (I hope Fidelity does report the transaction to IRS here) and suggested that $5.35 Federal Tax was withheld (even though my closed positions list doesn't show the tax withheld and only my August statement does).
- Also, if my way of reporting it is right, will I get an error later as the sale date is before the buy date? I haven't gotten one yet, but if I do, should I flip those dates?
I know this is a complex question and any help would be great.
@DaveF1006
