Regarding paying taxes to IRS?

-Can anyone please tell me the steps to pay taxes to IRS?



I am using online brokerage firm to trade U.S. stocks. However, i am a non-American, and living outside U.S. I know that i must pay taxes but the problem that i don't know the steps to pay them. I submitted W-8BEN tax form to my brokerage firm.

Can any body help please?Your broker will withhold 30% of income.



The 30% rate is correct for dividends and interest income.

If you are NOT in the US during the year, the capital gains won't be taxed.Capital Gains

With certain exceptions, capital gains income is not usually taxable to a nonresident alien whose days of presence in the United States do not equal or exceed 183 days in a calendar year. However, refer to The Taxation of Capital Gains Of Nonresident Alien Students, Scholars and Employees of Foreign Governments for an exception to the general rule. If the capital gains income is taxable it is not usually subject to withholding. If the capital gains income is taxable, the beneficial owner of the capital gains income is required to report the gains on Form 1040NR. The beneficial owner of the income may claim the benefit of the tax treaty article which deals with "Income from Gains" on his Form 1040NR. (See Table 1 in IRS Publication 515 or 901).



http://www.irs.gov/businesses/small/inte鈥?/a>



Investment income

Reporting interest, dividend and capital gain income is a little confusing. There are spaces provided to show it on page 1 of Form 1040NR and on page 4 as income not effectively connected with a U.S. trade or business. Reporting it on page 1 means it is effectively connected to a U.S. trade or business.



http://www.thetaxguy.com/return.htm



You MAY be receiving a Consolidated 1099 statement after the end of the tax year with the Information that you will have to use to report SOME or all of the different types of income that you will be receiving from the brokerage firm showing 1099-INT, 1099-DIV, 1099-B sales of securities stocks and bonds, Etc. and you will you have to use the 1040NR along with the schedule B of the 1040 tax form for the DIV and the INT income and also the schedule D of the 1040 tax form for the sale of the securities, Etc.

You will get a credit on your 1040NR income tax return for any amount of INCOME taxes that might be withheld from these income sources during the tax year on page 2 Line Payments

Lines 60a through 60d鈥擣ederal income tax withheld. Enter all federal income tax withheld.

Use the search box at the www.irs.gov website for 1040NR and then choose the instructions.

See Pub. 519 for more details.



http://www.irs.gov/instructions/i1040nr/鈥?/a>



Instructions for Form 1040NR (2010) U.S. Nonresident Alien Income Tax Return

Line Instructions for Form 1040NR



http://www.irs.gov/instructions/i1040nr/鈥?/a>



Individuals.



http://www.irs.gov/instructions/i1040nr/鈥?/a>



Payments



http://www.irs.gov/instructions/i1040nr/鈥?/a>



Hope that you find the above enclosed information useful. 07/02/2011