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New Member
posted Mar 21, 2024 12:36:18 PM

Indian Resident - Dividend Tax Not Withheld by Brokerage Company

I returned to India more than a year ago. However, I am maintaining my US brokerage account that I opened when I was in the US. After some studies, I found out that as an Indian resident (tax purpose), I am subject to a flat 25% tax in the USA on my dividend earning in US brokerage account. Now, generally, US brokerage withheld this tax before paying out to an Indian resident. However, they do not know that my tax residency status changed from the US to India, and therefore, they did not withhold any dividend. Do I need to fill out 1040-NR and pay the 25% tax in the USA? Anyone faced same situation, please suggest. Many thanks.

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1 Replies
Expert Alumni
Mar 21, 2024 1:45:22 PM

According to the instructions to Form 1040NR, you would be required to file a non-resident tax return to report income that was taxable but on which tax was not withheld:

 

 

 

Here is a link to the article:  Taxation of Nonresident aliens