I'm a mexican citizen established on Mexico City, I would like to start investing on-line on american stocks using Ameritrade, Scottrade or another related service provider.
Some people told me that if I have not a Social Security number or a Tax ID number, Ameritrade will withdraw 30% of my earnings.
Can someone tell me what should I do to find the best answer of my problem/situation?
2007-11-20 10:43:41 · 3 answers · asked by coronel1984 2 in Business & Finance ➔ Taxes ➔ United States
Once you have the account established with Ameritrade, ask them to issue you a document on letterhead that shows you have an account.
Then file this with the form W-7 (using the trackable asset exception).
EVEN WITH THE ITIN, you are still a non-resident. Ameritrade will be required to withhold 30% (after you get the ITIN, file a W-8BEN with Ameritrade and claim the tax treaty since the treaty has a lower rate of 15%) of all interest and dividends.
2007-11-20 12:43:14 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Since you are a non-resident alien for tax purposes you will STILL be subject to the 30% source tax on any gains or income you receive from your US based investments.
2007-11-20 22:17:04 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
File a form W-7 with the IRS.
2007-11-20 19:42:19 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋