Early 401k withdrawal 1040NR form

phytosan · #1 Apr 28, 2006, 08:19 AM

I am an Austrian National who lived in Columbia, SC 1999 - 2002 and moved to Mexico in before the end of 2002. In 2003 I made an early withdrawal of my entire 401k savings of $US 23'000. Now I receive a letter from the IRS that I need to file a tax return using form 1040NR.

Question one: Is this correct, or should such income be taxed in Mexico?
Would I also need to pay state taxes in South Carolina? If so, what form is to be used?
On the form there is no provision for 401k. Do I treat it as an IRA?

Thanks

PHYTOSAN

phytosan · Apr 28, 2006, 01:24 PM

Thank you very much despite a somewhat expensive answer

I have a couple of more questions that I'd much appreciate your insight on:

1. Can I deduct moving expenses from the U.S. to Mexico if work related and occured in that year? Wat other deductions should I consider?

2. Form 1040NR makes references to pages that are not included in the form. For example item 6 in Filing Status and Exemptesion states Qualifying widower with dependent child (see page 7) My form goes to page 5. Where could I find the remaining pages?

Thanks again I much appreciate your time. Do you have any questions that I might consider answering?

PHYTOSAN

phytosan · Apr 28, 2006, 02:43 PM

Again, very helpful, thank you very much. Just one more questions:

I am assuming that I should report moving expenses in line 9 - Unreimbursed employee expenses - job travel. Please confirm. I am also assuming that should fill out form 2106 based on criteria "1. You claim any travel, transportation meal or entertainment expenses for your job" Is this correct?

Again, thank you very much.

PHYTOSAN