Tax Question

[P1et]

I recently sold some stock in Europe and put the proceeds in my European bank account. I then wired all funds I had in that account, including money I had saved up growing up into my US bank account.

What do I pay taxes on and/or declare to the IRS?

 

[P1et]

Also, my bank in Europe sent me a letter saying that I had to send them a W9 otherwise they would be obliged to charge backup withholding tax on all US-source income, 28%.

 

[ScottB]

you should receive a 1099-div form at years end if the European Bank will report the sale and proceeds stateside. If not, I cannot see how they can track it truthfully. It would become your honesty to report as you see fit.

A W9 is a US form that certifies your Social Security Number.

 

[FMINUS]

If the Euro bank is holding taxes, you can file for a Tax Credit here in the US. If not you will be taxed 35% for dividends. Or nothing if you fail to file...... If its not a big amount, not one will know