topic Short Term Capital Gains Taxes when moving out of the US permanently with H1B in Get your taxes done using TurboTax

Short Term Capital Gains Taxes when moving out of the US permanently with H1B

TitniumWolf — Wed, 18 Feb 2026 11:02:36 GMT

I moved out of the US in April 2026 for good and have been outside ever since.

1) I was on H1b visa when I moved out in April

2) I had a W2 from Jan to March of the tax year

3) From Apr to the end of tax year, I only have short term capital gains on the sale of my US stocks

When I file for my taxes this year, how would my short term capital gains taxes on sale/trading of equities be treated?

Re: Short Term Capital Gains Taxes when moving out of the US permanently with H1B

pk — Wed, 18 Feb 2026 18:01:38 GMT

@TitniumWolf ,

(1) you say you moved out of USA on 4/15/2025 (?)

(2) your H-1B was still valid

(3) When did you enter the USA --- because a long-term resident has more implications. US wants to make sure that all taxes are paid/collectible, depending on length of stay some assets may need to given mark-to-market ( for US taxes), exit paperwork must be filed with both IRS and USCIS.

Need more details, including your current tax-home and country of citizenship--please

Re: Short Term Capital Gains Taxes when moving out of the US permanently with H1B

TitniumWolf — Wed, 18 Feb 2026 18:06:14 GMT

I moved out on April 1st 2025

My h1b was still valid when I left (but paused I think since I was unemployed for 2 months and then left the USA)

I’ve stayed in USA since 2019 when I was a student. I have now moved to my new tax home and country of citizenship India

Re: Short Term Capital Gains Taxes when moving out of the US permanently with H1B

pk — Thu, 19 Feb 2026 18:48:58 GMT

@TitniumWolf , thank you for your answers. Namaste ji

Should I then assume that your visa was adjusted to H-1B sometime in 2022/2023 ( you were exempt till 12/31/2023 or when adjusted to H-1B). Please confirm, just for completeness.

So the best guess would be that you were a dual status in 2023, Resident for 2024 and had about 90 days in 2025 towards SPT. If the above is correct ( again correct me / my assumptions ), then for 2025 you would again be dual status -- 1/6th of days present in 2023, 122 days for 2024 ( 1/3 of days present ) and 90 days in 2025.

Thus you will file a form 1040 covering your world earnings through 03/31/2025 and a form 1040-NR covering ONLY US- sourced income. Note that TurboTax does not support form 1040-NR -- so you can either use a service like SprinTax or local CPA ( since everybody in India seems to use CPAs for Tax filing) familiar with Tax treaty. It is not difficult and the form 1040-NR is available in fillable pdf at www.irs.gov.

(1) Note that this would mean you have file by mail -- The form 1040 needs to be marked at the top " DUAL STATUS FILER ", both 1040- and 1040-NR needs to signed and dated and together mailed to the IRS.

(2) Note that you have to use Itemized deduction because your 1040 does not cover a full calendar year.

(3) Note that you also have to file a state return ( short year), covering the resident period i.e. till you left the country.

(4) Your employer and/or you have to in form USCIS that you have left the country and that your H-1B is terminated.

The US based stocks/bonds etc. that you own and dispose off will come under the tax treaty. Also any taxes imposed by US on this ( i.e. post your departure from the US ) income is eligible for Foreign Tax Credit in India.

This is the general situation / comment.

If you need more detailed answer to your specific situation, you can either add to this thread or PM me ( NO PII -- Personally Identifiable Information, please ).

Does this make sense ? Is there more I can do for you ?

Namaste ji