Here's another company I found prior to the one I used. I appreciate you're trying to avoid the professional advice, but figured I'd pass on, if nothing else they might be another resource to get you pointed in the right direction in the future -Thank you very much for your message, RedCabin.
No worries, sorry it wasn't really helpful. Ultimately it's navigating around the various roadblocks and connecting with the appropriate people and what the specifics steps/forms/terminology are ultimately required, which I'm sure you'll be able to do in time. Frustrating, as it doesn't need to be that way but c'est la vie.This is an assumption based on what they have told me through different channels. Fidelity's and IB's replies are essentially the same: they apply a 30% withholding to any interest and dividends, regardless of their source (US or non-US). I have purchased two Ireland-domiciled ETFs, but since they don't distribute dividends, I can't confirm right now they withhold 30% tax.If no – Are you preempting Fidelity will withhold 30% because of your experience with situation #2?
I figured that's what you might have done/are doing, and I too would have taken that approach. Seems they're covering their behinds but as you say time will tell. It's one thing to find relevant IRS documentation but how that's interpreted by other parties, particular large US financial businesses is another thing, hence "talk to your tax advisor".The bank my international organization works with, who mainly serves G-4s and is incorporated in the US, doesn't tax the interest generated by checking accounts, regular saving accounts, HYSAs or CDs, as long as they have the client's corresponding W-8BEN form on file. So it seems the exemption is valid, in theory (I've checked several authoritative sources and they all agree on this) and in practice. It seems (understandably?) that the number of G-4s working with brokers is too low for the latter to take the trouble to understand the particularities of our situation.#2 makes sense to me because you’re effectively holding cash (FCash) in an American based brokerage account which pays monthly interest.
That was actually something I was going to ask. Over the weekend I did a little digging because I was curious about the G4 (which by the way, financial challenges aside, seems pretty cool!). I came across a message board of sorts where G4's ultimately had Credit Union access via their International Organization (presumably to facilitate salary payments and like you had access to certain options). They were bemoaning lower Credit Union savings rates but given G4 status seemingly were having a hard time even opening accounts at other US financial institutions. Unfortunately, I closed the private web browser session and couldn't relocate the page! However, mostly anecdotal and this was back from 2014 I think, suffice to say perhaps it's always been tricky to navigate. You're offered enough support in terms of day to day financials, and the bank your international organization utilizes are familiarized enough with the correct process or perhaps gets some dispensation from the IRS. But no direct support is readily offered for longer term investing for people in such positions. You're kind of left to figure it out. And yes, for Fidelity et el it's simply not in their business interest to know more nuanced NRA situations.Yes, it seems this is going to be the only reasonable course of action. As a beginner, I'm taking baby steps (investing very little and with extreme caution), so the proceeds I will get by the end of this year, if any, will be way below the cost of working with the few CPAs who can help us navigating this maze (that's why I wanted to avoid filing a tax return). But I'd rather see it as an investment in my financial education.As per my earlier comment, I suspect you’ll ultimately have to file an appropriate tax return with IRS to confirm you’re were not resident in the US, making a claim for any withholding you deemed to be exempt from (and what you seemed to allude to in your reddit post conversing with Fidelity reps).
Understood. I certainly learn more by doing so again would do exactly as you're doing, dipping your toe in. Also I guess a lot has to do with your longer terms plans but as we know life happens and time flies by. I figured I'd be here for 6 months. That turned into another 6 months which in turn led to H1B and that turned into Green card etc - here I am 22+ yrs and counting.Thank you so much! I'll contact them, in case they can help.Personally, rather than reaching out to brokerages and asking, I would consider reaching out to a company such as Form 1040NR Guide (1040NR vs 1040) (gre ... vices.com)
https://www.goldinglawyers.com I nixed figuring utterly overkill, presumably too expensive given our level of net worth, and in reality our particulars probably aren't that complicated. However, the website helped me understand something I was dealing with and I liked how they presented information, so booked marked "just in case" I ever felt I needed more one-on-one services. What I noticed from their services menu that might have some indirect application in your situation "We are often called upon to help clients evaluate tax treaties, asses Form 8833 Tax Treaty positions & determine whether different sources of foreign income are taxable in the U.S."
All the best.
Statistics: Posted by RedCabin — Tue Jun 18, 2024 2:51 am — Replies 18 — Views 1679