Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
mattia1965
New Member

Hello! Can I claim a refund of 30% income tax withholding as non resident alien as my country of residence has no tax treaty with teh U.S.? Appreciate your answer, thanks

I have the dual citizenship (Italian & German), but I live in Costa Rica and I am in a process to get my residence. As I want to start selling on Amazon.com, Amazon would withhold 30% of gross revenue as Costa Rica has no tax treaty with the U.S. Is there any way to avoid this as a European "citizen"? Can I get this 30% refunded in when I file a tax return in the U.S.?

1 Best answer

Accepted Solutions
pk
Level 13
Level 13

Hello! Can I claim a refund of 30% income tax withholding as non resident alien as my country of residence has no tax treaty with teh U.S.? Appreciate your answer, thanks

Amazon, is treating you as a non-resident alien for US tax purposes. In such case there is a requirement to withold 30% of gross payments/earnings by the agent ( in this case Amazon). I don't believe it makes any difference as to your citizenship  or residency ( other than claiming treaty benefits).  Where I have a doubt here is  that  you gross  income from US sources is being treated as  net income.  However, you can file a 1040-NR  showing your expenses  and hopefully things would get more in line . Note that TurboTax does not support non-resident alien  filing ( 1040-NR)  directly but a sister organization does. Perhaps you should consult a local tax person familiar with US tax laws.  Good Luck

View solution in original post

1 Reply
pk
Level 13
Level 13

Hello! Can I claim a refund of 30% income tax withholding as non resident alien as my country of residence has no tax treaty with teh U.S.? Appreciate your answer, thanks

Amazon, is treating you as a non-resident alien for US tax purposes. In such case there is a requirement to withold 30% of gross payments/earnings by the agent ( in this case Amazon). I don't believe it makes any difference as to your citizenship  or residency ( other than claiming treaty benefits).  Where I have a doubt here is  that  you gross  income from US sources is being treated as  net income.  However, you can file a 1040-NR  showing your expenses  and hopefully things would get more in line . Note that TurboTax does not support non-resident alien  filing ( 1040-NR)  directly but a sister organization does. Perhaps you should consult a local tax person familiar with US tax laws.  Good Luck

Dynamic AdsDynamic Ads
Privacy Settings
v