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This year, I did an internship in the US, and during that time I bought some stocks. Now I am back in Germany, and got dividend payments on these stocks, and also want to sell some of them soon. However, I still have to do my taxes for my time in the US. Do I have to declare my profits/losses/dividends in my US taxes or German taxes? Also, I will be in Canada soon. If I sell stocks while I am there, will I have to do a Canadian tax declaration?

The stocks were bought via the app Robinhood if that matters. Also, I am talking about small amounts, about $1000.

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    Capital gains are typically sourced to the country of your residence. At the time you sold the shares, were you a resident of the US or Germany [Note that being physically present in a place is not automatically the same as being a 'resident' for tax purposes]? – Grade 'Eh' Bacon Jan 14 at 14:23
  • So far I havent sold any shares, only got dividends (miniscule amounts, about 1.20$). I plan to sell them soon though. – Luca Thiede Jan 14 at 16:25
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If you have your investments in a US brokerage, then they will probably send a form to the IRS each year on your activity.

Since you haven't sold your investments, there are no capital gains to worry about. Just the dividend income. I believe you have to earn at least $400 in dividends for the IRS to even be interested.

The tricky part will be when you sell. If you are an American, then your income pretty anywhere in the world is at least potentially subject to taxation

But if you are living in another country and you cash out, your American brokerage is still going to send that report to the IRS. There may be some threshold where the IRS doesn't care too much, but I don't what that is.

In any case, the IRS is still going to think that the transaction took place in the USA and so should be subject to its taxes. You will have the burden to prove that your situation makes you exempt. I don't know how to do that either.

Next time maybe wait until you get to your permanent residence before investing. It may simplify your life in the long run.

  • There's too much missing from this answer to be trusted; it misses some key information. – Grade 'Eh' Bacon Jan 16 at 0:44

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