Actions required if received 1099 form despite foreign resident

[nicolap92]

Hello community, I am non-US citizen and also non-resident in the United States, but I held Restricted Stock Units (RSUs) issued by my previous employer (based in the US) and managed through eTRADE.

During 2023, I cashed out these RSUs, but, since I moved from a foreign country to another (both outside US) after my initial eTRADE registration, during the RSU cash-out process I provided a different address from the one of my original eTRADE registration, when I correctly filed the W8-Ben form and was granted the foreign resident status (which led to receiving the Form 1042 at the end of the tax year).

The result was that, having specified a different address during the aforementioned transaction, eTRADE couldn’t verify my foreign resident status again, resulting in them sending me the Form 1099 Consolidated Tax Statement for the tax year 2023.

In this form, I notice that in ‘Box E (basis not reported to the IRS)’ of ‘LONG-TERM GAIN OR (LOSSES) - REPORT ON FORM 8949, PART II’ in the ‘Proceeds’ column (and only there) it is shown the amount of RSUs I cashed out. My question is whether, based on these transactions and the information provided, I am required to pay taxes in the US for the tax year 2023 when I was instead a tax resident in my current country of residence.

I apologize if the scenario isn’t entirely clear - I’m not very familiar with US taxation, but I can provide additional details if needed. I’m also open to considering professional tax advice, but currently my main need is to educate myself in order to understand the best course of action for this

Thank you in advance for any help!

[Critter-3]

A nonresident alien cannot use TurboTax. A nonresident alien has to file Form 1040-NR, which TurboTax does not support.

Try  Sprintax to prepare Form 1040-NR

[nicolap92]

Yes, I understand but would that be actually required in my case since I will be taxed by my current country of residency eventually? Such country has a double taxation agreement with US and also in the 1099 form I received from eTRADE I can see there were no taxes withheld for such transaction.

[Vanessa A]

As Critter-3 stated, you would need to try a tax prep company like Sprintax.com that is well versed in what US NON-Residents need to do and report.  The rules for US Residents and Citizens are a lot different than the rules for nonresidents.  Sprintax specializes in Non-Residents so they would be able to give you an accurate answer.