Question about US taxes after R2I?

majmera · Post by **majmera** » Mon Feb 02, 2015 6:14 pm

This may be a basic question, but I could not find a clear cut answer. Forgive me if this has already been discussed elsewhere.

My situation is that I R2Ied in 2013. I do NOT have a GC or a USC. My US based employment also terminated in 2013. I filed US taxes in 2014 (for financial year 2013). In 2014, my only income in the US has been from sale of my Employee Stock Options and Employee Stock Purchase Plans. Both these sales would have ordinarily qualified for long term gains. I had held the stocks/options for over 2 years. I also received dividends from mutual funds (I did not sell any mutual funds) which were reinvested based on my plan selections.

My question is am I liable for any taxes in the US for the financial year 2014?
What forms do I need to fill for US taxes in order to make sure everything is clear and in the right side of the law?

Thanks
Mayank

majmera · Post by **majmera** » Sun Feb 08, 2015 7:07 pm

Anyone?

thanks in advance!

okonomi · Post by **okonomi** » Sun Feb 08, 2015 7:35 pm

http://www.us.kpmg.com/microsite/ies/tfc/content/chapter3.htm
Whether or not you want to file a tax return would depend on
1. whether your assets are still "effectively connected" in US trade/business and you plan to let them be so for the future
2. how much money (earnings during 2014) you are talking about, as well as whether any money you had earned during the year 2014 (in your investment activities) has been withheld as taxes.
3. Got any 1099's (like you had in the previous year/s) ?

http://money.stackexchange.com/questions/23653/how-do-i-estimate-my-taxes-when-i-have-only-1099-income?rq=1

majmera · Post by **majmera** » Tue Feb 10, 2015 5:58 pm

Thanks for the response Okonomi. It is the definition of "Effectively connected" that I am having trouble with. I haven't received a 1099 from UBS (which manages my employers ESPP and options) but I believe they will be mailing them out after Feb 15. As far as I can tell, no taxes were withheld from the sale of ESPP since I had already filed a W8-BEN with them.

The other investment that is questionable are MFs with Vanguard. I have received 1099 from them. I did not sell anything, but I did receive dividends which got reinvested automatically. In this case since I did not sell anything, no taxes were withheld.

okonomi · Post by **okonomi** » Tue Feb 10, 2015 6:18 pm

majmera;593824Thanks for the response Okonomi. It is the definition of "Effectively connected" that I am having trouble with. I haven't received a 1099 from UBS (which manages my employers ESPP and options) but I believe they will be mailing them out after Feb 15. As far as I can tell, no taxes were withheld from the sale of ESPP since I had already filed a W8-BEN with them.

The other investment that is questionable are MFs with Vanguard. I have received 1099 from them. I did not sell anything, but I did receive dividends which got reinvested automatically. In this case since I did not sell anything, no taxes were withheld.

There is a "sponsor" of this forum offering free tax advice to your questions. [ I am not a professional tax adviser] You ought to put out some kwestins on that thread.
Non-resident aliens getting passive investment income sounds like you need to file tax returns.. Check publication 519 at the IRS site.

majmera · Post by **majmera** » Thu Feb 26, 2015 1:15 pm

I talked to UBS (which manages our company's ESPP). I sold a couple of batches of ESPP in 2014. Both were held for longer than 2 years and no taxes were withheld since I had already filed an W8-BEN with them. I was told by them that I will not be getting a 1099 but instead a 1042 sometime in March.
I am still trying to find out what that means for filing the tax returns.