Thanks a lot for your detailed answer! @pk and @DaveF1006
My spouse and I are both H1B and our last entry on I94 (=entry in US and still stay in US) is Jan 2020, which means we passed substantial presence test for this year, so we are residential aliens not foreigners for tax purpose. We are selling our primary residence due to the relocation for work, but the total sale price will be over $300k.
I already explained those to the title company with all IRS links and our documents, we even hired a CPA to generate the letter to prove we passed the substantial presence test. The title company is just too arrogant or racism I guess to understand the situation and keep insisting on withhold the FIRPTA, and threat us that the buyer will sue us if we do not agree with withholding.
I consulted my previous CPA, they have never dealed with this type of issue before, so they are not sure if we get mistakenly withhold, how can we get it back with next year's tax return.
So I was wondering if you know (in the worst case), if we get withhold FIRPTA (which should not), can we just file 1040 to get it back, or do you know is there any special form I should file?
Thanks again!!
