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1099-DIV reporting for Non US Citizen, not in US for 2014.

I was in US on H1B for 7 years till Sept 2013 and filed 1040 for year 2013 as I had US Source income, as in - wages, dividends (1099-DIV) and capital gains (1099-B). I was never a US Citizen nor a Green Card holder or applicant.

Till this day I continue to maintain a managed brokerage account with Chase and got 1099-B (with capital gains) and 1099-DIV for year 2014. Even though I was not in US in 2014 I still have to file 1040NR with Schedule NEC section filled out before June 15 2015.

To correct the tax reporting for Non-US Citizen NRA I'll be filing W-8BEN with Chase to make sure that I do not get 1099 forms next year.

Question: Do I have to pay Pub 901 determined % of tax under Income Code Number 6 to IRS based on the dividend from a U.S. Corporation (1099-DIV) and Capital gains (1099-B) or I am fully exempt from paying it under 26 USC 871 ?

Thanks in advance.

Reply to
Alok Gondhalekar
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Capital gains on your broker statement would only be subject to US tax if you had been in the US for at least 183 days in 2014. As you were not in the US..... they are not taxable.

Dividends paid by a US entity are US source income and subject to the

30% tax unless a tax treaty says otherwise. Guessing from your name that you are a resident of India, Article 10 of the Us - India tax treaty limits the tax to 25%.
Reply to
Alan

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