4) Investing & Asset Growth

The IRS wants a piece of your investment profits. You need to be smart about when you pay them.

• Capital Gains Tax: If you buy a stock for $100 and sell it for $150, you owe tax on that $50 profit.
• Long-Term vs. Short-Term: If you hold an investment for more than 1 year, your tax rate is much lower (often 0% or 15%). If you sell in less than a year, you pay your normal high income tax rate.
• Dividends: Some stocks pay you "rent" just for owning them (Dividends). As a Non-Resident Alien, the U.S. usually takes 30% of this automatically, unless your country has a tax treaty.