Can H1B visa holder do Stock Trading in US? Tax, Day time trading ?

by Kumar · 4 comments

One of the commonly asked questions is Can I do stock trading in US, I just came to US on H1B visa ? Here are few of my thoughts and experiences.

H1B Stock Trading in USA

Can you do stock Trading on H1B visa – Any rules ?

Yes, you can do stock trading in US by creating an account on your name from one of the online stock brokers like Scott trade, Ameritrade, TradeKing, etc. It is perfectly legal to do stock trading. I personally have an account and it is very easy to sign up too. You will be asked for Social Security Number (SSN) and other details when you signup for the account.  You cannot trade on behalf of someone or for someone, it should be your personal account.

Paying taxes for Stocks trading on H1B visa

You should pay taxes for all your Stock earnings you make. No exceptions as it is a source of income and IRS taxes for all income. If you have made money or have done any transactions, it is a good idea to go to a tax consultant to get help with filing taxes. Personally, me and my friends, as we are on H1B visa we use tax consultants for filing taxes for stocks,  as it can get complicated.  Because, if you lose money, it is tax deductible and you can get some advantages. Do NOT mess with tax filing in US.

Day trading vs Delivery based trades on H1B visa ?

It is very common for most of the internationals to do delivery based trades, but some may have thoughts about day trading and having it as a full time job.  The reality is, you cannot do it as a full time job because you are sponsored H1B visa and should work full time for your primary job or company full time. Day trading may be done on and off, but it should not be done so much that it takes away time away from your primary job.  This is based on my knowledge and experience.

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{ 4 comments… read them below or add one }

meditation quotes from the bible September 18, 2014 at 6:13 pm

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ObjPython February 13, 2014 at 12:30 am

This is probably related to the topic ,I opened an account with some online broker and they are requesting for visa with photo ID and all i have is approval notice with I-94 card attached to it , how do i explain this person that i don’t have a H1 B visa with Photo Id and it will be pasted into my passport when i travel outside of USA (at least that’s my understanding) , Any suggestions? I explained it to him but the guy says its listed as required doc ,what to do i am in pickle!

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easwaran September 5, 2010 at 9:51 pm

@Kumar,
greetings, and many thanks for the information
but what about the category who is in US , like students, who is in F1 VISA
can he trade, and what is the tax structure to pay in case you earn money.
short term profit attracts taxes, if so
what about long term profit
by the by how is your experience as a trader
or was
care to shower us with information
you are doing fantastic service Mr.Kumar
keep coming and bless us
love and gratitude
easwaran
india

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Kumar September 6, 2010 at 6:53 pm

Yes, students on F1 visa can do trading provided they have SSN. I am not an expert on the details of specifics of taxing, I usually go to tax consultant. I have not done enough trading in US. The best idea is to talk to customer service of a stock brokerage firm to get more specifics.

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