topic Used to be a resident alien, but now living overseas in Get your taxes done using TurboTax

Used to be a resident alien, but now living overseas

seunkim95 — Fri, 29 Nov 2024 01:41:55 GMT

Hello,

I used to live in the U.S. until July, 2022. I had lived in the U.S. since 2013, so I was a resident alien (I was on my student visa so not a green card holder). I have lived in South Korea since July, 2022, but I still have some bank accounts, stocks left in the U.S., earning interests, dividends, and profits from my stocks.

It seems like I still need to file taxes for 2024. Which forms do I need to fill out? Do I need to file both federal and state tax returns (although I didn't live in any particular state and I am not a green card holder)?

As a side question, should I have notified IRS about my departure from the U.S.?

Re: Used to be a resident alien, but now living overseas

pk — Fri, 29 Nov 2024 18:31:43 GMT

@seunkim95 , without further information and solely based on your post, I am assuming the following ( please correct/ confirm in your reply :(

1. You entered USA with a F-1 visa in 2013. Thus you would have been on "exempt" status through 12/31/2017.

2. So for the next years i.e. 2018 through your departure date in 2022 you would have been a "Resident" for tax purposes. taxed on your world income and filed a form 1040.

3. You should have filed a dual status return for the tax year 2022. A 1040 ( world income ) for the period you were in the USA and a 1040-NR ( ONLY US sourced income ).

4. From Jan 1st. 2023, you were a Non-Resident Alien, taxed ONLY on US sourced income, filing a 1040-NR ( not supported by TurboTax ) and US-Korea Tax Treaty comes into force.

5. Assuming that when you left the USA, your status changed ( either through cancellation of your F-1 visa or just abandoning your residence), there should have been a filing with Immigration that you are leaving the country and also a note to IRS informing your departure. At this point in time and assuming that you just did not inform Immigration and/or the IRS, there is not much point in taking curative actions. But you should file for an ITIN, inform your broker and financial institution(s) that your status has changed.

Is there more I can do for you ?

Re: Used to be a resident alien, but now living overseas

seunkim95 — Mon, 02 Dec 2024 02:15:58 GMT

I already have an SSN. Do you still need to file for an ITIN? The IRS states that an ITIN is only issued to individuals who are not eligible to obtain an SSN but still need a taxpayer identification number for federal tax purposes.

Do I still need to file for my 2024 tax return both federal and state? My only US-sourced incomes in 2024 were from my stock sales, interests, and dividends.

Re: Used to be a resident alien, but now living overseas

pk — Mon, 02 Dec 2024 19:42:32 GMT

@seunkim95 you only need a tax ID ( TIN) and so , even though you are an Non-Resident Alien and domiciled abroad, for tax purposes you are treated no different than an NRA living in the USA ( at least for federal purposes ).

Thus you are taxed ONLY on US sourced income. Since you have had US sourced passive income in 2024 ( gains from sales, interest , dividend etc. ), you still have to file a return. The reason you need to tell your broker / bank etc. that your status has changed ( from Resident for tax purposes to NRA and with no US residence ), is because they need to withhold federal taxes either directly or through an agent --- US wants to make sure that the legitimate taxes are paid.

For the State, you are not a resident ( domiciled ) and therefore there may be no requirement to file a return ( you need to make sure of this by looking at "non-resident" definition for the particular state ( where you stayed last ). But generally you would not need to file a State tax return.

Does this answer your query ? Is there more I can do for you ?