I own 400 shares of MMM, the total dividend is $600, I will get $540, how is it calculated？Thanks!
Tax of Dividend?
- Thread starter hurricane_sh
- Start date
Thanks,
Thanks, but that's what I will get. Maybe the broker deduct 10% for non-US traders? I'm sure that 10% of the total dividend is deducted, I just don't know what it is for.
Yes, in many cases, a broker is required to withhold tax from dividends paid by a US corporation to a nonresident alien or a foreign business entity. And in many cases, the amount that is withheld is 10%.
The rules can get really complicated really fast. In some cases, you may be able to reduce or eliminate the withholding by claiming the benefits of a tax treaty. Whether you qualify depends on what country you are from.
In other cases, you may be able to get a refund of some of the tax withheld by filing a US income tax return. But in your case, that may cost more than the amount in question. If you pay an accountant to file tax forms, the accountant's fee will definitely be more than $60.00.
You can read about it in the attached 58-page booklet published by the Internal Revenue Service.
The rules can get really complicated really fast. In some cases, you may be able to reduce or eliminate the withholding by claiming the benefits of a tax treaty. Whether you qualify depends on what country you are from.
In other cases, you may be able to get a refund of some of the tax withheld by filing a US income tax return. But in your case, that may cost more than the amount in question. If you pay an accountant to file tax forms, the accountant's fee will definitely be more than $60.00.
You can read about it in the attached 58-page booklet published by the Internal Revenue Service.