Ask Me Help Desk - 1040-nr & 540nr

Hello!

I moved to the USA during Sep. 2005, so I am nonresident person for tax year 2005. However, because I will stay in the US more than 183 days during 12 months period I will need to file taxes (federal and state) for 2005. For year 2006 I will dual status resident, because I move from USA at end of Sep 2006.

Background information:

I worked 4 months for US company as international assignment (I had L1 VISA). My employer was not US company and I got all salaries as foreign currency. I paid normally my taxes to foreign country. Despite this fact, I will still need to inform my foreign income (which can be treated as US income, because I live in USA more than 183 days) to IRS and FTB.

Questions:

How to attach needed documents (how to inform foreign income) for 1040-NR and 540NR documents, I do not have W-2 or EIN etc. information, because I have not got zero USD from US company? The IRS informed that I do not need to attach anything, just file 1040-NR and no evidence from foreign income is not needed (just keep for your records). Is this really so? I have already converted my income to USD and everything is ready, but I do not know what to put my "firm name" and EIN information, because basically I do not have them in the USA:)

I am thinking to file extension to clear this out, it is a little bit confusing to pay taxes to several countries and especially when you do not belong any US company at all and your income is foreign one.

Best Regards,

Confused

JuuKoo:

You will need to file as a non-resident alien (Form 1040NR), which means you need NOT include any income from overseas, just the income you earned while in the U.S.

Your company should provide you a W-2 for the income earned in the U.S.

File the Form 4868 (extension) until you get everything straight.

Quote:

Originally Posted by AtlantaTaxExpert

JuuKoo:

You will need to file as a non-resident alien (Form 1040NR), which means you need NOT include any income from overseas, just the income you earned while in the U.S.

Your company should provide you a W-2 for the income earned in the U.S.

Go ahead and file the Form 4868 (extension) until you get everything straight.

Hello!

Sorry about my earlier, a little bit confusing posting. I actually was working for US company and during this time my salary was paid by European company... complicated I would say:). I was an internal transfer inside same company (This European company has branch in the USA). So, I will need to pay taxes from these foreign salaries due to fact those are 100% related to working in the USA.

Problem: Due to fact I got all the money in Euros (during working in the USA) and have no W-2 document (and I will not get from US branch of company), should I for example deliver instead of W-2 the 4852 (substitute for form for w-2)? I have same problem for filing California state tax, papers are ready but I can not attach my W-2, because a) I do not have it and b) never will get it from US company. I tried to ask some tax support, but because I belong to European organization, I will not get this kind of documents or support (I understand this because I did not get any salaries in USD from this US branch).

Best Regards,

JuuKoo

JuuKoo:

What is the basis for your company refusing to issue a W-2? They may feel that you are not liable for either US or California taxes.

Quote:

Originally Posted by AtlantaTaxExpert

JuuKoo:

What is the basis for your company refusing to issue a W-2?? They may feel that you are not liable for either US or California taxes.

Actually you are 100% right! This is a case. I woud not have been liable for federal and ca taxes (my company said it to me), in case that I would have moved from USA after I stoppped working here. Due to fact my assigment was under 6 months and this EU country and USA has tax deal, you do not have to pay taxes if you are working less than 6 months in the USA. This is the reason why I am not allowed to get W-2.

BUT... there is a big but, because I did stay here after my assigment the situation is different. When person stays in the USA (more than 6 months => 183 days), he or she is liable for taxes. This is official information, which I got from IRS. Luckily, I finally got also good support from IRS how to file taxes in my case and everything is now OK...

Thanks for the support!

Best Regards,

JuuKoo