income taxes help


For Stock trading in US need to file W8-BEN or W8-ECI?

Hi, I am an Indian Citizen. I bought some stocks in US, when I was in there. At that time my status was Alien RESIDENT in US. Hence I gave W-9 form to my stock broker. Also I get W-8 form from my employer and filed the tax returns. I returned from US to India couple of years back for good. Hence I believe my status would be changed to NON RESIDENT ALIEN. Still my stock broker has W-9 form only. But from IRS site I understand that I need to submit different form if I am NON RESIDENT ALIEN. I am confused whether I need to submit W8-BEN for W8-ECI form? (not able to understand clearly from IRS site). Also, after filing this will I be exempted from tax with holding and tax filing for US? Thanks in advance for your time.. Regards, San.

Public Comments

  1. Send the broker the W-8Ben. It was actually your responsibility to update this form the next year. (It will expire every few years.) As far as withholding, the broker will withhold 15% of any interest received, 25% for dividends. (This will match the tax treaty.) If you are not in the US 183 days during the year, capital gains (except on real estate) should not be withheld.
  2. You will file Form W-8BEN. Non resident do not pay any U.S. tax on income from stocks in U.S.
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