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MBA2008 · Apr 12, 2011, 10:52 AM

Hi,

I am a spouse working on a G4 visa work permit with a US employer on a full time basis. My employer withholds federal, state, social security and medicare taxes from my payroll. I have been filing form 1040NR and D40 (DC State tax) under 'married filing separately' since last 2 years as my husband works with world bank group and does not pay any taxes. I have been only claiming a single deduction for myself and no other tax credits. My question is that will I always be considered a non-resided for tax purposes on a G4 visa? We also recently purchased a house in DC and are paying interest and property taxes on the same. Can I claim tax credit on interest paid on the property? What other tax credits are available to G4 visa holding spouses paying taxes to the US government? Thanks in advance.

fmf77 · Apr 14, 2011, 04:03 PM

Hi, I am in the same boat as you and contacted the WB lawyer referred to by HR. The upshot is we will always file as NR for federal tax purposes as long as we are G4s. The penalties if caught are severe, including revoking the visa and shipping you and your spouse out of the country. As a result, we cannot claim interest deductions on the mortgage. I think there are childcare deductions available to NR but not entirely sure.

DC taxes are more of a mystery and the lawyer is still looking into it. It is unclear whether we are residents or NR for DC --and that would determine whether we file the D40 or the NR refund form.

The one good thing is that as G4s taxes are due in June, therefore giving us some time.

Goodluck!

MBA2008 · Apr 15, 2011, 08:32 AM

Thank you so much for the insights. I had no idea that we have until June to file the taxes - thank you for letting me know! I had heard similar feedback from informal sources regarding implications of filing 1040 for G4 visa holders. Although, I do think paying taxes without getting the benefits does not really add up! I suppose there is no way for G4 spouses to change visa status (to H1, etc) to claim the resident status either.

I will also get in touch with the WB HR to figure out the DC taxes.. although last year I filed a D40.

Please do share any update in this regard in case you get any new information.

All the Best!

mhermosi · Mar 13, 2014, 09:07 PM

Hi,

It's been three years since you talked about this... I'm new on this boat, and I'm trying to see what can I do.

Have you finally figured out if we are NR to DC Taxes?
Do you know what exceptions do we have since 2011 to current tax year (2013)?
Is still June the deadline?

I work as a contractor, not sure if that is self-employed or what, the thing is nobody is holding my taxes, I have to pay them, and I have
Received a 1099-MISC form. As you can see I'm totally lost.

Thanks in advance.

-Martin

AtlantaTaxExpert · Mar 14, 2014, 09:16 AM

Martin,

You ARE self-employed and must file Schedule C with the Form 1040NR. Further, I do not think you are exempt from self-employment taxes.

The employees of the international organizations who are on the G-4 visas really get over by not paying taxes, but their spouses on the same G-4 visas end up getting the short end of the stick.

I have one G-4 visa client who is seriously considering moving out of his house and renting a house in his neighborhood, then rent his own house out, because it is the ONLY way he can deduct his mortgage interest and property taxes.