Tax related question for 1040NR

Forum|Forum|1 year ago
March 23, 2025
1 reply
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Hello,

I am non-resident of USA and haven't spend a single day in USA during the year 2024.

I am filing my USA tax returns as I have income from Dividends.

My total dividends income is $2921, out of which QUALIFIED DIVIDENDS is $2400.

In sprint tax I am seeing I owe only $730 but I think I should be taxed 30% which will be $876.

There is no tax treaty involve as current I don't have to pay international income in India.

Not A Product Question

SabrinaD2

As a nonresident alien, your US dividend income is generally subject to a flat 30% tax rate

This rate applies to Fixed, Determinable, Annual, or Periodical (FDAP) income, which includes dividends
For your total dividend income of $2,921, this would indeed amount to $876. However, if Sprintax shows you owe only $730, it might be considering some other factors or deductions.

You can find more details on the IRS website about taxation of nonresident aliens and figuring your tax

aays2Author

@SabrinaD2 thanks for the inputs. As per my understanding non-resident are not eligible for any deduction on dividend. Is my understanding correct?

What will be the tax rate for USA bank interest income?

DaveF1006

Non-residents generally cannot claim deductions on dividends unless specific tax treaties between their country and the U.S. provide reduced withholding rates. For example, the standard withholding tax rate for non-residents on U.S. dividends is 30%, but treaties may lower this rate. Since your country doesn't have a treaty with the US, all income should be taxed at 30%, including bank interest.

@aays2

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