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Should I report the foreig losses if I'm not a resident? How reporting this foreign losses afect me in my tax return?

 
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3 Replies
pk
Level 15
Level 15

Should I report the foreig losses if I'm not a resident? How reporting this foreign losses afect me in my tax return?

@ramiroh9  --- (a) Non Resident Aliens are taxed only on US sourced/connected income -- so foreign income  is not taxed by the USA and  therefore no losses / gains are recognized either;

(b) Non-Resident Aliens file their tax return ( covering US income ) using form 1040-NR or 1040-NR/EZ ---- none of these forms are supported  by TurboTax.  SprinTax is  TurboTax partner  in this.  You can also use the services of Tax professionals familiar with  international filings.

 

Whcih country are you from? Are  you in the USA?  When did you enter the USA and with what visa?  Are you working here ?  Do you have  Tax ID   ( SSN  or ITIN )?  Are you married  and if so to US citizen/Resident or ?

Should I report the foreig losses if I'm not a resident? How reporting this foreign losses afect me in my tax return?

I already filed my taxes using turbo tax.

Please advise what should I do.

 

Which country are you from?

Mexico

Are  you in the USA?

Yes

When did you enter the USA and with what visa?

January 2019 with a Work Visa TN/NAFTA

 Are you working here ?

Yes, I'm currently working on W2

Do you have  Tax ID   ( SSN  or ITIN )?

Yes, I have a social security number

Are you married  and if so to US citizen/Resident or ?

Single, Never Married, Not-Resident

 

 

pk
Level 15
Level 15

Should I report the foreig losses if I'm not a resident? How reporting this foreign losses afect me in my tax return?

@ramiroh9 , since you were admitted to the USA with work visa  in Jan 2019 AND assuming that you have not spent any days in the USA during the  prior years ( 2017 and 2018 ), you would be a dual status  person  for 2019 --- till  you met the substantial presence  ( 183 days  counting  all the days in 2019 + 1/3 the days present in 2018 + 1/6  the days present in 2017 ) you are  Non-Resident Alien and thereafter you are Resident Alien for tax purposes.  

As a resident alien for tax purposes you are taxed on your world income -- thus if you had losses   in Mexico that could be recognized   ( need to what type of losses , stock sale, sale of  main home, sale of income property or what ? ) under US tax laws, it should help your US tax burden.  Personal losses  are only deductible  with a floor of 2% AGI and if you itemize.

 

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