[bbspeterlee]

Hi,

My case maybe a little bit complicated.

I'm from China, I was a student until June 30, 2007. I don't have green card.

1. July 13, 2006 ~ September 28, 2006: I worked in the US as a TRAINEE at a NON-academic company under my first J-1 visa, and during that period, I was still a student.

2. December 12, 2007 ~ December 12, 2008: I worked in the US as an INTERN at the same company above under my second J-1 visa. (I was NOT a student any more).

3. I was NOT physically in the States during the year of 2009.

I have already filed the tax and got return for the tax years 2006/2007/2008.

I think I have to file tax for the year 2009, because I have US income in 2009.

1. Although I left the US on December 13, 2008, the company was very nice, and they even gave me bonus for 2008 performance, the payment (of course) was paid to me in March 2009, with a big bite of Federal & CO income tax withheld. And also I received W-2 form from my company.

2. In the year 2008, I joined the company's 401(k) plan, but in 2009, I was told by the plan provider (Principal) that my 401(k) was terminated, and after that, they sent me my 401(k) money with a big bite of Federal tax withheld. Therefore, I received a 1099-R form from Principal for tax-filing purpose.

3. Since my bank account was NOT closed in 2009, I also received 1099-INT form from my bank for tax-filing purpose.

Since my total US income only contains several thousand bonus, more than thousand 401(k) money and several-dollars interest, I think I could get most tax back.

Here come my questions:

1. Which forms should I use for Federal Tax, 1040, 1040NR, 1040NR-EZ.
Since I was not in the US, according to the tax residency test, I am a non-resident tax payer, am I right?
Since I have bank interest and 401(k) money, can I still use the form 1040NR-EZ?

2. Does China-US tax treaty apply to me? Which extra forms do I have to fill?

3. (For CO State tax, I think I need to fill Form 104 - COLORADO INDIVIDUAL INCOME TAX RETURN).

4. Are there any other forms I have to fill to maximize my tax return?

Sorry, I'm wordy. Thanks.

Peter

[MukatA]

You will complete nonresident tax return. Only 401(k) withdrawal is taxable income. You will also pay 10% early withdrawal penalty on this income.

Since you are nonresident in 2009, bank interest is not taxable. Also W-2 income is not taxable as it was earned while you were nonresident. However, you should seek clarification from AtlantaTaxExpert and IntlTax.

[bbspeterlee]

You will complete nonresident tax return. Only 401(k) withdrawal is taxable income. You will also pay 10% early withdrawal penalty on this income.

Since you are nonresident in 2009, bank interest is not taxable. Also W-2 income is not taxable as it was earned while you were nonresident. However, you should seek clarification from AtlantaTaxExpert and IntlTax.

Thanks for your reply.

The problem is I've already paid the tax for the W-2 income (bonus as mentioned above) and bank interest.

I'm asking what forms I should file for the tax year 2009.

[MukatA]

You will report this as tax withheld (already paid) on your tax return. You should get a refund.
File Form 1040NR.

[bbspeterlee]

You will report this as tax withheld (already paid) on your tax return. You should get a refund.
File Form 1040NR.

Thanks for your reply.

2. Does China-US tax treaty apply to me? Which extra forms do I have to fill?

Thanks.

[AtlantaTaxExpert]

Belated answer: Yes, because the income represents deferred compensation for work done while in the J-1 status, you can in fact claim the China U.S. Tax Treaty. You MAY need to file Form 8833 to explain the treaty position.