I moved to US on Dec 9th, 2024, and worked for 21 days and got a paycheck. I need to file tax for this one month for the year 2024.
But I got taxed at the higher rate of 22% for my 21-day paycheck. I am looking for refund for as well.
When my stock gets vested, 31% of the vested stock is withheld by company for the tax and remaining is getting vested to my broker account. But on the paycheck I can see that the entire stock vested amount is added and taxed. How can I get refund for this part ?
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NON RESIDENT ALIEN
If you are a non-resident alien, your return must be filed on Form 1040NR, which cannot be prepared using TurboTax. You can use TT’s partner, sprintax:
https://www.sprintax.com/non-resident-alien-tax-1040nr-turbotax.html
IRS —HOW TO DETERMINE RESIDENCY STATUS FOR TAX
https://www.irs.gov/individuals/international-taxpayers/determining-an-individuals-tax-residency-sta... you are not a,January 1 – December 31).
I believe you are referring to a restricted stock unit (RSU). If so, the full value of it less what you paid for it, if anything, is taxable in the year that it vests. It is subject to employment taxes, so that is why some of it is sold to pay your share of those and also you will typically pay in income taxes along with your taxes withheld from your wages. So, it sounds like it was reported correctly on your W-2 form.
You will receive a Form 1099-B reporting the sale of the shares. When you report that in TurboTax, you need to make sure the cost basis is reported correctly, as often if won't include the income reported on your W-2 form. Since you sold the shares soon after you acquired them, the capital gain on sale of them should be minimal. You can take the income reported on your W-2 for the stock and divide it by the number of shares acquired. That will give you the cost per share you can use to determine the cost of the shares you sold, that should be the amount you enter when you report the stock sale in TurboTax.
When you enter the stock sale, choose RSU for type of sale. When you enter the sales proceeds and cost basis, click on the box that says The cost basis is incorrect or missing on my 1099-B and you will have an option to adjust the cost basis reported if necessary.
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