Hello everyone,
I have been living in America under work visa and moved to Japan last year.
I’ve been doing stocks back in the States and still doing trading (on my own as a hobby).
I have few stocks that qualifies for long term capital gain since I was holding it for more than one year. I know I need to pay tax when I make any profit but after reading some articles, the tax % will be based on my income. “Long-term capital gains tax rates are 0%, 15%, or 20%, depending on your taxable income.”
I have been using chat gpt and it gave me this advice after sharing my situation.
“For 2024, the maximum exclusion is $120,000. Your foreign earned income of $XX,XXX.XX is well within this limit, so it can potentially be excluded from U.S. taxation if you qualify for the exclusion. You will be only responsible for 15% of the net profit as the tax”
If I’m employed in Japan and not making any money in US, how do I file tax for this? Will this be a huge pain in the ass? or not a big of a deal? I am using American financial institution to trade by the way.
Thank you!
by NeueBalance