Hi, I am a F-1 student, started from last JULY I start to trade stock, the stock value have gone up and I haven't cash out yet ,do I need to pay tax ? what if cash out?

[w826062611]

I am graduated 2020 DEC and I am planning to go back to China, would I still be able to trade US stocks ? thanks

[npierson7 · Accepted solution]

You don't have to pay taxes on your stock operations until you cash it out, then you'll have pay taxes on the gain on sale, if any. 

As for the second questions, you will probably able to continue doing that, however you need to contact your broker firm and ask them about your particular situation. 

[w826062611]

Thank you so much for your fast reply. Just want to clearly by cash out you mean take out the money from my trading account or just simply  sold a stock (the found is still in trading account)

[npierson7 · Accepted solution]

I meant when you sell your stock, it is taxable event and it will result gain or loss on the  sale. 

[w826062611]

Then I need to file tax, how much percentage is the tax and can my gain offset with some of my lost ? is the form 1042-s I should use ?

[npierson7]

If your status will be non-resident in for your 2021 taxes, you'll need to use Form 1040-NR to report your income form US sources. You'll receive form(s) 1099 from your broker with amounts to report. You loss theoretically could offset the whole amount of your gain; you'll need to pay attention to Short term (if you hold your stocks less that a year) and Long term (holding period more that 1 year), they are reporting separately. Short term loss can offset short term gain, and long term loss can offset long term gain. Unused loss can be carried forward to future years. 

[w826062611]

I am graduate 2020 DEC and my F-1 status end in March 10th, I should use 1099 report the year 2020 and 1040 to report for the following year right ? 

[ThomasM125]

You would file a form 1040NR for 2020 if you were here on an F-1 visa. If you become a resident in 2021 then you would file on form 1040.