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    asf79's Avatar
    asf79 Posts: 2, Reputation: 1
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    #1

    Jul 5, 2013, 07:23 PM
    RSU (restricted stock units) and NRA (non-resident alien)
    Hi folks,

    I'm non-resident alien (NRA) working abroad for US company.
    Recently my restricted stock units (RSU) have vested, and some of them have been "sold to cover" the tax.

    May I know that -- as a NRA, can I claim a refund for those sold shares through "personal exemption" using form 1040NR?

    Thank you.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Jul 6, 2013, 04:15 AM
    I have handled several cases similar to yours. Assuming the RSUs were earned while working INSIDE the United States, you owe taxes which can be reconciled by reporting the taxes using Form 1040nr and claiming your personal exemption.

    If, however, the RSUs were earned while working overseas, then NO tax is due. You would only need to show, using Form 8833, that the RSUs were earned during that overseas work period.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #3

    Jul 6, 2013, 04:16 AM
    If you wish my professional help to file this return, email at the address in my profile.
    asf79's Avatar
    asf79 Posts: 2, Reputation: 1
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    #4

    Jul 6, 2013, 04:55 PM
    Quote Originally Posted by AtlantaTaxExpert View Post
    I have handled several cases similar to yours. Assuming the RSUs were earned while working INSIDE the United States, you owe taxes which can be reconciled by reporting the taxes using Form 1040nr and claiming your personal exemption.

    If, however, the RSUs were earned while working overseas, then NO tax is due. You would only need to show, using Form 8833, that the RSUs were earned during that overseas work period.
    I work overseas -- when you say "no tax is due", does it mean that I don't have to pay any tax? In that case, why was 26% of my shares sold to cover, by the US broker?

    Thank you.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #5

    Jul 6, 2013, 05:44 PM
    If the RSU was earned while you overseas, you should have completed Form W-8ben to let the broker know you are not liable for U.S. income taxes.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #6

    Jul 7, 2013, 04:10 AM
    With no Form W-8ben on file, the broker is required by law to withhold taxes, which necessitated the need to sell shares to generate the needed cash.
    taxesforaliens's Avatar
    taxesforaliens Posts: 649, Reputation: 117
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    #7

    Jul 8, 2013, 07:19 AM
    You would need to file a tax return to get a refund for those withholdings and make sure to provide the form w8Ben to your broker as soon as possible (if you still hold those RSUs).
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #8

    Jul 8, 2013, 07:50 AM
    Yes, if you have other RSUs which have been earned while working overseas, heed taxforaliens' advice about the Form W-8ben.
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