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Author: hmatallana Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121114  
Subject: Non-resident allien, do I have to file a return? Date: 4/4/2001 2:49 PM
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How's everybody,

I live in South America and my wife works for a U.S. company; she has some stocks thay she acquired through an employee stock purchase plan.

I'm trying to establish if she has to file a Return. According to IRS Publication 519 (Tax guide for alliens) and Form 1040NR instructions she is a non resident allien. The company has paid her dividends which, of course are a U.S. source income. This is clear to me.

From the IRS point of view, since her only business is stock trading through a U.S. resident broker, therefore she is not engaged in a trade or business in the U.S.. So her dividends where subject to a 30% withholding tax on the time they where payed.

According to the mentioned IRS Publication and form, her only possible filing status is "married filing separately" and she will have to file a return only if not all tax that she owed was withheld during 2000.

Well, in this case all the tax was withheld (at 30% rate) so I believe that she doesn't have to file a return. I think I've got this thing right but I would appreciate your comments on this matter, am I right or wrong and why.

Thank's a lot to everybody,

HMC
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