Hi,
I was in H1B visa for the entire year 2014 (and still having the same).
And I fall under Resident category for Tax purposes.
During the year (On Dec- 2014) I switched job and moved from Washignton to California state.
I would like to know the Tax forms I should be filing.

FYI: Let me know if you need more info
Resident for Tax Purpose.
H1B holder. Nationality Indian (FBAR or any financial account declaration? )
Switched jobs. Have two w2s
Have moving expenses to deduct.

Also I have these additional income
1. Sold Company Stocks.
2. Purchased and sold Espp Stocks
3. Purchased and sold Stocks using individual account.

And if I combine the social security tax deducted by my both the employees it is more than the annual limit. Kindly let me know how can I get it refunded ?
Also should I mention my Foreign account details , assets/insurance policies or bank interest in any different form ?

Forms I could think of
1040 - for general income
8889 - for HSA declaration
3903 - for Moving expenses?

Thanks a lot. I appreciate your time.

You will need to file Form 1040 with Schedule D and Form 8949 to report the stock sales, plus (as you already know) Forms 3903 to claim the moving costs and Form 8889 to account for your HSA, plus Schedule B to declare interest and/or dividends on your foreign accounts. If the foreign banks withheld taxes TDS at the normal 10% rate, you will need to file Form 1116 to claim the Foreign Tax Credit.

The HSA custodian should have sent you Form 1099-SA.

If your foreign accounts have balances that, in total, exceed $10,000, you need to submit the FBAR (FinCen Form 114). That is separate from the tax return and must be filed electronically no later than 30 June 2015. There are NO extensions and no excuses for filing late. The FBAR is an information-only report.

If your foreign accounts have balances that, in total, exceed $50,000, you need to submit Form 8938 (FATCA) WITH your tax return.

You WILL get a refund of the excess withholding of Social Security.

Finally, you will need to file a California state return as a part-year resident.

If you need professional help with filing the tax return and submitting the FBAR/FATCA, please email me at the email address in my profile.

Thanks a lot for the info.
Have few more clarifications.
If I declare interest on ScheduleB of 1040 - I am assuming I should pay the tax for it as well ?
At what exchange rate I should convert my Indian rupee to USD ? Any guided values ?

Social security refund: How do I get the refund ? Should I file 843 separately ? Or can I just the excess amount in Line 69 of 1040 ?
In my case my first employer reached the max limit and stopped deducting further. But my second employer continued to deduct it saying they cannot stop deducting.


FBAR: Are these balances as of Dec 2014 ? Or the time of filing


Thanks & Regards.

Yes, the interest on the SCH B IS subject to taxes.

I used the exchange rate at the mid-point of the year (2 July 2014), but you can use the average exchange rate or the end of year rate.

For the FBAR, you MUST use the end-of-year rate. The balance reported is the HIGHEST balance of the year.

You claim the excess Social Security on Line #71 of Form 1040

Thanks for the info. Few more clarifications I appreciate your help.

1. I have no foreign dividends. Have foreign interest (around 300$) do I still need to pay tax for that? (because I see some $1500 limit on schedule B).

2. In Schedule B for foreign accounts I see only 'yes' or 'no' questions. Where should I mention the amount ? And I do not have any 1099-INT for foreign accounts can I still add it to 8a of form 1040 ? If so, I will be adding it to the US interest right then how IRS will know the interest amount from my foreign accounts?

3. Regarding Schedule D. I see how to enter short term and long term gains and how to calculate them. But I do not understand how to report them in line 13 of 1040. I believe long term income will be taxed at lower rates . Kindly let me know how those calculations are made and what gain I should report on line 13.

4. My wages is > 200K (adding from both my employers) and I will be filing single should I fill form 8959 and pay additional medicare taxes ? Or this rule is for per W2 ? My wages will cross 200K only if I add up from both the W2s.

5. Also do I need to file 8960 ? I do not understand what the call Net investment income.. does it mean the gain from selling stocks (the one mentioned on Schedule D? ). I my gain will be around 5K do I need to file 8960 ? Even after filing schedule D?? Kindly let me know.

Quote:

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Originally Posted by AtlantaTaxExpert

Yes, the interest on the SCH B IS subject to taxes.

I used the exchange rate at the mid-point of the year (2 July 2014), but you can use the average exchange rate or the end of year rate.

For the FBAR, you MUST use the end-of-year rate. The balance reported is the HIGHEST balance of the year.

You claim the excess Social Security on Line #71 of Form 1040

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Please do NOT take this the wrong way, but WHY are you preparing your own tax return??

Your return is exceptionally complex, and the capital gains issues involves somewhat complicated tax calculations, even with tax software. Someone who makes MORE than $200K can afford to hire a competent tax professional to prepare his/her tax return.

Based on what you told me, my fee to prepare your return would be somewhere between $300 - $500, and it is money well spent by you, because you will spend 10-15 hours to prepare the return yourself, and I KNOW your time is worth more than $30 an hour.

If you ME to prepare your return, email me at my email address in my profile.

Thanks for the info. I appreciate your time.
I just want to understand how it works... Will contact you if I need further assistance.. Thanks.

Quote:

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Originally Posted by AtlantaTaxExpert

Please do NOT take this the wrong way, but WHY are you preparing your own tax return??

Your return is exceptionally complex, and the capital gains issues involves somewhat complicated tax calculations, even with tax software. Someone who makes MORE than $200K can afford to hire a competent tax professional to prepare his/her tax return.

Based on what you told me, my fee to prepare your return would be somewhere between $300 - $500, and it is money well spent by you, because you will spend 10-15 hours to prepare the return yourself, and I KNOW your time is worth more than $30 an hour.

If you ME to prepare your return, email me at my email address in my profile.

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Not a problem; you have my email if you want to proceed further.