[[I am a novice and planning to open an brokerage account with Datek. I am a foreigner living in the States. I was told that there will be 30% tax withholding on the dividend. Is this regular? Is there any way that I can reduce this withholding and only report it when filing tax return?]]It all depends on your "status". If you are a non-citizen and a non-resident, then you'll be subject to this 30% withholding (or lower rate, depending if your home country and the US has a tax treaty) on interest and dividends. But the good news is that you'll not owe taxes on any capital gains generated by your stock.But if you are a resident alien (living in the US for a certain number of days of the year), then you'll pay taxes on ALL of your income, just like any normal US citizen. So what you'll really have to do is determine your status. You might want to go to the IRS web site and download/read IRS Publications 519 and 901 for a LOT more information...and even how to determine what your US tax status actually might be.TMF TaxesRoyWant to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Don't be the LAST one on your block to own this masterpiece, since it's sellin' fast. Remember: It's never to early to start planning for your 1999 taxes. So just click on this link (http://www.foolmart.com/market/product.asp?pfid=MF+013+I) to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on http://www.fool.com/school/taxes/taxes.htm and you'll be right at the home page. Check it out. Finally, if you need to get to the IRS web site, click on http://www.irs.ustreas.gov to go directly there.
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