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ITIN NEWS BLOG

News & Tips from an ITIN Acceptance Agent

1040NR - 1042-S and 1099-DIV US share sale


1040NR - 1042-S and 1099-DIV US share sale
1040NR - 1042-S and 1099-DIV US share sale

I've received a 1042-S and 1099-DIV for a US share sale - what do I do with this?


A 1042-S and a 1099-DIV will have been issued to you as all payments to foreign individuals are reported to the IRS. These documents report the transaction and any tax withheld to the IRS. They are primarily used to report dividends. Just keep them on file, as they are a record of the annual dividends received and tax withholding.


Any capital gains/losses should be reported within your annual 1099 statement.


All of the above documents are needed if filing a 1040NR US tax return to reclaim or pay US tax.


My 1042-S has 30% tax withholding - is this right?


If you are non resident of the US and if a current W-8BEN has not been filed with your broker, then yes, they have withheld the flat rate of tax for a non resident. If you are resident of a treaty country, you may be able to claim some, if not all, of the 30% tax withheld back by filing a 1040NR US tax return.


How long do I have to claim back any tax?


You have 3 years from the date of filing to file a 1040NR for overpaid US taxes. You will need to complete a 1040NR and attach any documents showing the tax withheld.


I also had capital gains tax withheld on a 1099 - can I claim this back?


As a non resident of the US - yes, capital gains for listed stocks and shares are tax free. If tax has been held incorrectly, you can claim this back by filing a 1040NR.


How long before I get my refund?


The refund is processed in the following way:

1. Where you are applying for an ITIN (or an ITIN renewal), the ITIN is processed first. This take 7 to 11 weeks

2. Once the ITIN is issued, the tax return is forwarded for processing. This can take anywhere from 3 months to 6 months+

3. Once the refund is issued, the IRS will mail a USD cheque to you - this can take 3 to 4 weeks to arrive


How can you help?


We assist clients regularly who have had excess US tax withheld on both dividends and sales of US stocks (i.e. US capital gains). We assist with both the 1040NR tax return filing to reclaim overpaid US tax and simultaneously file a Form W-7 ITIN application. We have a 100% success rate in obtaining refunds of this type.



Just Breve is a Certifying Acceptance agent (and Enrolled Agent). We can assist with all 1040 and 1040NR tax return filing requirements and ITIN applications. We help applicants on a daily basis for both new ITIN applications and for ITIN renewals. We charge fixed fees (including up to 2 hours travel time to you).

You also have the choice of visiting us at our office near Heathrow airport (J4b off the M4).

Get in touch today and we will happily assist and answer your questions:

Email: info@justbreve.com Phone: 0208 1444632

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