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    petethepig's Avatar
    petethepig Posts: 5, Reputation: 1
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    #1

    Jun 6, 2012, 01:09 PM
    Nonresident Alien Income Tax Return
    Hello

    I am a nonresident alien.
    I live in Russia and my employer is a company in New Zealand.

    They want to pay me with paypal. Unfortunately, it is impossible to withdraw money from russian paypal account.
    Happily, I have a US paypal account and US bank account linked to it.
    So I can withdraw money using simple VISA card.

    As long as I understand this kind of income is not effectively connected with US Trade/Business so I am not a subject of any taxes.
    Tell me please, should I send a 1040NR form to IRS and if yes, How should I fill it in?

    Thank you
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jun 6, 2012, 01:17 PM
    For 2011, the IRS will probably NOT examine the money transfer. However, starting in 2012, Form 1099-K is being sent to the IRS showing large transfers of money.

    Under current tax law, your income is NOT subject to U.S. income taxes. However, you MAY need to file Form 1040NR with Form 8833 to explain the reason for the money transfer through your U.S.-based PayPal account.
    petethepig's Avatar
    petethepig Posts: 5, Reputation: 1
    New Member
    		  
    #3

    Jun 6, 2012, 01:35 PM
    Quote Originally Posted by AtlantaTaxExpert View Post
    For 2011, the IRS will probably NOT examine the money transfer. However, starting in 2012, Form 1099-K is being sent to the IRS showing large transfers of money.

    Under current tax law, your income is NOT subject to U.S. income taxes. However, you MAY need to file Form 1040NR with Form 8833 to explain the reason for the money transfer through your U.S.-based PayPal account.
    Thank you!
    But there is one thing that is still not clear to me.
    Will the bank notify me if I need to file these forms, or I should do it anyway without any notifications?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jun 6, 2012, 01:37 PM
    Neither the bank nor PayPal will tell you anything about your filing requirements. It is up to YOU to determine if you need to file.

    Of course, if you do NOT file and the IRS decides that you owe taxes, the IRS WILL notify you that you owe them money. THAT you can count on!
    petethepig's Avatar
    petethepig Posts: 5, Reputation: 1
    New Member
    		  
    #5

    Jun 6, 2012, 01:39 PM
    Quote Originally Posted by AtlantaTaxExpert View Post
    Neither the bank nor PayPal will tell you anything about your filing requirements. It is up to YOU to determine if you need to file.

    Of course, if you do NOT file and the IRS decides that you owe taxes, the IRS WILL notify you that you owe them money. THAT you can count on!
    Okay, thank you very much!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    Jun 6, 2012, 01:40 PM
    Glad to help!
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