Taxes??

Discussion in 'Politics' started by hktrader888, Apr 18, 2006.

  1. hktrader888

    hktrader888 Guest

    I'm a Hong Kong Resident and I have an account that is a independent contractor daytrading account (address on account is Hong Kong address too). It is now time to file taxes but I have a question. Do i need to file anything for US Taxes? For ETrade I had to file a W8 BEN form to alert the US govt that I am exempt. However for a remote independent contractor account, do I need to send anything? And if I do need to file a W8 who do I send it too? The IRS says that don't need it, and the company I trade through doesn't take it.
    Any help would be appreciated!
     
  2. The primary question is: are you a U.S. Citizen?

    If you are, then you need to inform the IRS when you file your 1040 Personal Tax Return, that you have an interest in a foreign account, because as a citizen, you have a legal duty to report all of your income from whatever sources. Then, if you are entitled, under U.S. law, you can reduce any income from the foreign account by whatever deductions, exemptions, credits, etc. which may be available to you.

    Alternatively, if you are not a U.S. Citizen, then you have no duty to report a foreign account to the IRS.
     
  3. hktrader888

    hktrader888 Guest

    hi i'm a hong kong citizen.
    so does that mean i don't have to file a w8?

    i thought i would have to because i had to file one for my etrade account.
     
  4. If you have a brokerage account held at a U.S. corporation (i.e., ETRADE), then that corporation must protect itself from your failing to correctly report and pay taxes, by withholding 30% of your income earned through the account, unless you certify to the brokerage and the IRS that you are exempt from backup withholding for U.S. taxes by filing a W-8 BEN.

    Depending on the tax treaties between Hong Kong (or, China, as the case may be), you may be exempt from some or all reporting and payment requirements. I would need more info about your status and your accounts, and I would have to research the issue (and you'd have to pay me).