Question

Tax filing as a new US resident with foreign income

Forum|Forum|2 years ago
February 19, 2024
1 reply
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Hello everyone,

I recently became a US resident in July 2023 after receiving my Green Card (my first entry was in July and I've never been in the US before). Before that, I earned income in my home country from January to June 2023.

Additionally, I had brokerage accounts in third countries, from which I received dividends income, conducted gain/loss operations, and paid NRA withheld tax as a non-US resident (30%) for dividends. I closed these accounts in December 2023 as they don't work with US residents.

Now, I'm preparing to file my tax return for the full year 2023 as a US resident (jointly with my spouse). Here are my questions:

- Can I treat my earned income from my home country as Foreign Earned Income on my tax return and apply a foreign tax credit to it (exclude from taxation, a sum less than 40k)?

- How should I report the gain/loss/dividends from my foreign brokerage accounts? These brokers do not issue 1099 forms, and I only have statements for all operations throughout the year.

- Is it possible to claim a refund for the NRA withholding tax on dividends for the entire year?

I would appreciate any insights or advice on navigating these tax filing complexities. Thank you in advance for your help!

Not A Product Question

AmyC

Employee

1. You may be able to use About Form 2555, Foreign Earned Income to exclude the income if you qualify. If you are not able to qualify, you can include the income and claim a credit for the foreign tax paid using Instructions for Form 1116.

2. Your brokerage accounts will need to be reported with Form 1116 used for the foreign taxes paid.

3. The NRA withholdings tax should be a part of your tax return so that you will get credit for those taxes paid. If the withholding is reported on a tax form, simply enter the form. If there are additional taxes not on a form, you can enter them separately when the program asks Any Other Taxes?

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