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I have an account with Robinhood which I opened when I was in the US and never traded on the platform. I did some trades this year. I am now an Indian resident for the entire year and forgot to close the account before moving to India and unfortunately i didn't know that Robinhood was available only for US residents. It was a honest mistake and I am ready to pay any taxes or penalties applicable. I will close the account soon but want to know how to proceed to fix this mistake and can i send W8BEN form to Robinhood so they can withhold required amount if needed and i can file tax returns as non-resident next year. If i get 1099 next year can i still file my returns as 1040NR without claiming any tax exemptions?

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  • did you get any solution for this? Dec 31 '20 at 23:36
  • @ParshvaMehta I contacted a tax professional and he said Robinhood will issue a 1099 form and using that you can file 1040NR to report your capital gains and dividends and pay necessary tax
    – prasad
    Jan 2 '21 at 8:34
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@prasad - Did you report your capital gains from 1099-B in Schedule NEC or 1040NR? As a non-resident, capital gains is not taxable in the US if reported in Schedule NEC but if we report on 1040NR, the capital gains is taxable. But Robinhood would have given a 1099 and also reported to IRS, what is the suggested approach?

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  • I reported my capital gains and dividends on 1040NR. As non-resident and depending on whether your country has a treaty with US, you need to report your gains on 1040NR and pay necessary tax which can be later claimed as tax credit in your country of residence
    – prasad
    May 19 '21 at 2:33

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