Tax of Dividend?

Discussion in 'Stocks' started by hurricane_sh, Nov 16, 2023.

  1. I own 400 shares of MMM, the total dividend is $600, I will get $540, how is it calculated?Thanks!
     
  2. hajimow

    hajimow

    The broker should not take(keep) tax. You should report it to IRS and pay the tax yourself. You are making a mistake in the calculation. If DIV is $600, you should get $600.
     
    hurricane_sh likes this.
  3. 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.
     
  4. BMK

    BMK

    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.
     
    hurricane_sh likes this.
  5. Thank you so much, @BMK, that explains it.