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CHOIK
Level 2

Stock Trading without Visa

I opened a Robinhood account for purchasing stock when I had non resident visa(J-1).

Now it was expired and I came back to my country, but I am still trading stock in Robinhood.

If I earned income in the stock market, do I need to file my tax return?

If so, how can I do it?

Can I file it by 1040NR?

 

I appreciate your answers.

3 Replies
ErnieS0
Expert Alumni

Stock Trading without Visa

You are subject to tax on dividends paid by U.S. companies, including the part of a dividend paid by a foreign corporation is U.S. source if at least 25% of the corporation's gross income is effectively connected with a U.S. trade or business for the 3 tax years before the year in which the dividends are declared.

 

You do not have to pay tax on capital gains, as the sale of personal property is sourced to the seller's home country. The IRS says "Gain or loss from the sale or exchange of personal property generally has its source in the United States if the alien has a tax home in the United States."

 

Robinhood will send a copy of the 1099-B to the IRS so you would need to file a tax return if you meet the filing requirements.

 

Related Resources:

CHOIK
Level 2

Stock Trading without Visa

I greatly appreciate your answer.

 

Could I understand that I have to file a tax return in my home country but not in US?

LinaJ2020
Expert Alumni

Stock Trading without Visa

You will be filing as a nonresident.  You will use Form 1040-NR to report US source income only.  If the company issued you a Form 1099-B, the IRS will be receiving a copy as well.  You should still need to file if meet the filing requirements.  As a nonresident, I will suggest you to visit https://www.sprintax.com/.  

 

You need to consult your government whether you need to file taxes in your country.

 

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