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    trk_2007's Avatar
    trk_2007 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Mar 2, 2007, 10:07 AM
    Nonresident Alien individual Tax
    Hi,

    I have a question about how are nonresident alien individual taxed? I have been living states for 6 years now with a H1-B visa and plan to go back to home country ( India ) end of this year. I have made investments in my non-taxable account over the years.

    My non-taxable a/c mostly consist of Closed-end funds for which I receive dividend ( 1099-DIV). From IRS website... when I become nonresident alien, I will be taxed at 30% on my 1099-DIV.

    Is there anyway I can reduce my tax burden ? Or the option is to take money with me.

    Thanks in adv
    trk_2007's Avatar
    trk_2007 Posts: 2, Reputation: 1
    New Member
    		  
    #2

    Mar 2, 2007, 01:13 PM
    Hi,

    I have a question about how are nonresident alien individual taxed? I have been living states for 6 years now with a H1-B visa and plan to go back to home country ( India ) end of this year. I have made investments in my non-taxable account over the years.

    My non-taxable a/c mostly consist of Closed-end funds for which I receive dividend ( 1099-DIV). From IRS website... when I become nonresident alien, I will be taxed at 30% on my 1099-DIV.

    Is there anyway I can reduce my tax burden ? Or the option is to take money with me.

    Thanks in adv
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Mar 4, 2007, 05:21 PM
    The amount of tax you cite will be based on how much is withheld. The 30% is that high to ensure you file a tax return to account for the money earned.

    The first $3,300 will be tax free, because that is the amount of your personal exemption when you file your Form 1040NR. Then it will be taxed at 10%, and then 15%.
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