Your Question Was:
My question is about tax return for U.S. nonresident alien income. I bought stock of Johnson&Johnson(JNJ) through a U.S. online stock broker and received dividend from JNJ. The dividend has 30% tax withheld. My question is whether the 30% tax withheld can be return using deduction for exemptions. (Line40 in Form 1040NR).
Thanks a lot.
The Answer To Your Question Is:
Thank you for your inquiry of April 21, 2012. You have questions concerning whether a personal exemption can be claimed against dividend income paid to a nonresident alien.
You did not provide enough information to properly respond to your inquiry. You did not indicate your country of residence.
Generally, dividend income received by a nonresident alien is subject to a 30 percent tax rate. This tax rate is also referred to as nonresident alien tax rate (NRA). Since dividend income is generally considered to be not effectively connected with a U.S. trade or business, it is subject to the NRA 30 percent tax rate, unless a treaty between the United States and the nonresident alien's country of residence provides for a lower tax rate. Also, since this income is not effectively connected with a U.S. trade or business, you cannot take a personal exemption on line 40 of Form 1040NR, U.S. Nonresident Alien Income Tax Return.
Thank you for using this electronic tax law service.
This answer is based on our understanding of the facts you presented in your question. Omission of facts may affect the answer given.
EMPLOYEE ID: 1000212741 Mr. Smith Tel.:English--(267) 941-1000 Spanish--(800)-829-1040 msg#: 1878624
雖然信件說我沒提供我的國籍而沒法適當的回答我的問題。但是信件說了一般狀況，就是股息是要繳30%的稅的，因為股息並不是 effectively connected with a U.S. trade or business, 所以不適用免稅額。
我先問了最簡單的狀況，就是美國公司的配息，我用 JNJ 為例。那如果是VWO這種投資非美國區域的ETF的配息呢？也許再來去問一下吧。