Hi,

I am from India working for an MNC on L1 visa from November 17th 2012 till March 17th 2014.

I filed my tax filings for Fiscal year 2012 and 2013. I have a question for tax filings in 2015 for FY 2014. I earned total 30K $ from January 1 2014 till March 17 2014.I repatriated back to India after completing my tenure in USA.

1.Do I have to file the Taxes under Non Resident ?

2.I am eligible for refundable of federal taxes with help from Jabuary 2014 to March 2014 ?

3. Since I am moved out of USA I am thinking to close my Bank accounts in USA.If I close the accounts in USA how can I receive the Refund from IRS ? If I receive a cheque can it be en cashed in my friends Bank account ?


Thanks,
Rajesh N

1) Yes, you file as a non-resident alien, filing FORM 1040NR.

2) No. Because you received earned income from a U.S. source, you ARE liable for federal and state income taxes. However, you can claim daily living expenses (food, rent, utilities, local transportation) because your job was considered to be temporary in nature.

3) Leave the U.S. Bank account open until you get your tax refunds for 2014. The Indian postal system is infamous for losing refund checks, and neither the IRS nor the state will direct deposit to a foreign bank.

Thanks for your expertise in answering my Question.

Since I lived and earned in U.S.A from January 1st 2014 to March 17th 2014 , Which is less than 180 Days will I get full refund of Federal W/H taxes in my 2015 Tax filings ?

If I Direct IRS to send a Cheque to me, will IRS sends the Cheque to foreign countries (i.e. India) ?


Thanks,
Rajesh N

Even though your stay is less than 180 days, you will NOT get a complete refund as a matter if U.S. tax law. That only occurs if the earned income comes from a foreign source.

You MAY end up paying no tax if your deductions exceed the earned income.

The IRS WILL mail refund checks to foreign locations, but they will not guarantee delivery, which is why it is best to keep the U.S. bank account open.

Thanks for your response.

Does my Status changes to Non Resident Alien for 2015 filings ? Do I have to select Form 1040NR for 2015 filings? Since I repatriated back to India on March 17th 2014.

Thanks for your help to make me to understand US taxation laws.

Unless you earn income while working INSIDE the United States in 2015, you will have no 2015 filing.

For 2014, you will file Form 1040NR with Form 2106 (to claim daily living costs) in January 2015.

If you decide you need professional help, this IS what I do! Please email me at the email address in my profile.