I am a Singapore citizen, had never step foot in USA for 2007.
I had a capital gain this year due to sale of Stock of the US company that I worked for. (about $5K gains)
My brokage had automatically tax withhold $2K of the sale.
I have the following questions.
1. Do I have to report all my income in Singapore that has in no relationship with USA and pay tax for that ?
2. Do I have to list out all my dependents who does not have a US Identifying number.
3. Since I don't see I qualify for standard deduction or any other itemized deduction, am I better off no file the 1040NR and just let IRS keep the $2K withholding? I have no plans to ever become a US residence or citizen.


Thank you

Did you work in the U.S. prior to 2007 and did you receive the stock from your employer?

I had never worked in the US prior to 2007. Yes, the stock was granted from the "ex-employer"
Thanks

In my opinion, the income is NOT U.S.-sourced, because the stock options are considered to be part of your compensation package.

All taxes should should be paid exclusively to Singapore.

You will need to file a tax return (Form 1040NR with a Form 8833) to claim this exemption and get the withheld money back.