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?

  • 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

@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?

  • 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

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.