# US capital gain distribution for non resident alien?



## Ysuzuki (May 24, 2020)

Sorry for posting in this forum but I found it hard to find the answer myself from internet and the IRS website. Though I think my question isn’t particularly complicated so hoping anyone here can give me a piece of advice. 

I’m trying to figure out if I need to file 1040NR at all. 

Tax status: non resident aliens as not spending enough time in the US. Have a brokerage account in US for stocks and ETF. Only have income on form 1042S. No other income. 


On my 1042S I had only an income that’s capital gain distribution (income code 36 on form 1042S) of around $260. As based on IRS (www[dot]irs[dot]gov/individuals/international-taxpayers/fixed-determinable-annual-periodical-fdap-income), my capital gain Income isn’t taxable: “If you were in the United States for less than 183 days during the tax year, you will not be taxed on your capital gains, except for the following types of gains: .....”

But I’m not sure if capital gain distribution that shows on my 1042s is the same as capital gain? I look up online that capital gain distribution is the capital gain of the mutual fund I invested that got distributed to investors account. So I guess it’s capital gain? Could anyone please shed some light? I have tried to search on internet but no luck 

Thank you so much in advance


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## NickZ (Jun 26, 2009)

Weren't you asked to file a W8BEN by the brokerage firm? Normally capital gains is taxed in your country of residence.


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## JustLurking (Mar 25, 2015)

Ysuzuki said:


> I'm trying to figure out if I need to file 1040NR at all.


The short answer is no. The general rule is that as long as your US tax _withholding_ matches your US tax _liability_, there is no need for a nonresident alien to file a 1040NR.

The US does not tax capital gains of nonresident aliens, so your US tax liability on this is $0. Assuming there was no US tax withheld on this capital gain distribution (and there should not have been, if the broker handled it correctly), your withholding is also $0. You have no US tax due, and there is also no withholding refund for you to ask for, so you do not need to file a 1040NR.


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## Ysuzuki (May 24, 2020)

Thanks folks!

Yes I have filled out a W8BEN to prove my nonresident status. 

And yeah thank you again for the answers. 

My primary question was that I’m unsure if capital gain “distribution” is (or at least is treated) the same as capital gain. Looks like that’s the case


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## Ysuzuki (May 24, 2020)

Sorry my computer used a weird symbol “. What I typed were double quotes. Not sure why the double quotes became “ 

> The US does not tax capital gains of nonresident aliens, so your US tax liability on this is $0. Assuming there was no US tax withheld on this capital gain distribution (and there should not have been, if the broker handled it correctly), your withholding is also $0.

To JustLurking: You are right! There was no withholding for this capital gain distribution. I am glad to find out that capital gain distribution is treated the same as capital gain for tax purpose for non resident aliens


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