Do non-resident aliens pay tax on US stock trading capital gains?

Question

Do non-resident aliens pay tax on US stock trading capital gains?

Answer 1

Yes.  The file Form 1040-NR or 1040-NR-EZ

Answer 2

It depends.

The IRS has a 183-day rule for stock market gains.  If a NRA is not in the US for 183 days during the year, the gain is excluded.  If the NRA is in the US for 183 days or more (certain visas do not trigger the substantial presence test), the gain IS taxed and it's taxed at the treaty rate or 30%.

http://www.irs.gov/businesses/small/inte...

Note, dividend income is always taxed.