Question

I am non resident for 2020 but had w2 and stock income in US. My CA filed and paid my tax as non resident on that income . Should i have paid in resident country only?

Forum|Forum|5 years ago
March 29, 2021
1 reply
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Is the CA wrong in paying taxes in US - can I show these paid taxes as tax credit in resident country?
It's my first year being US non resident

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ErnieS0

Can you please clarify your question?

You probably have to file an U.S. income tax return if you received a W-2 and had income from U.S. stocks.

How everything is handled depends on whether you are filing as a resident or nonresident alien. And what kind of tax did your CA pay? Did they pay income tax or social security/Medicare tax (FICA) or both?

Some nonresidents have FICA tax withheld in error. They can ask their employer for a refund or file Form 843, Claim for Refund and Request for Abatement. TurboTax does not support this form.

Nonresidents generally pay tax on dividends issued by U.S. companies. Capital gains are generally exempt.

You may also have to pay tax to you home country. We'd have to know more about your situation: what type of visa you have, how long were you in the U.S., etc.

Related Resource:

The Taxation of Capital Gains of Nonresident Alien Students, Scholars and Employees of Foreign Governments

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S

spirit247iAuthor

You've said - "You probably have to file an U.S. income tax return if you received a W-2 and had income from U.S. stocks."

SO my CA did file for me based on above two but its non resident return.

This means lets say I had 1000$ on W2 and 10000$ on 1099 -> I ended up fully paying taxes in US on both of these even while being non resident. Now I am wondering if that is wrong because I was not resident of US.

For the whole year I was resident of another country ABC. Should I show tax credit in ABC now because I already paid taxes in US? (I did US tax filing first and now need to prepare for country ABC)

Overall I am worried that my CA made me file US tax non-resident return and paid full tax there - while I was actually resident of country ABC for that tax year.

Note on social security tax:-

My understanding is $1000 on W2 form does contain tax wittheld in federal, social security etc. I ended up paying tax on all my wages based on payslips. I do understand that they shouldn't withhold social security as I am non resident but I exited US after being employed in US for first 15 days of Jan 2020. At that moment it was not known I would end up being non resident for whole year (and won't return). The social security amount is probably another sub-topic.