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.
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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