form 1040-NR to claim losses on Disposal of Worthless / Revoked shares against Withholding tax on Dividend Income

[leesm99pikl]

1 )	I have filed form 4868 for tax extension ,now I need to submit w-7 with foreign driving license ( no date of birth ,but for Malaysian , the 1st 6 digit of Malaysia national card is our birth date ) , can I submit driving license with national card ( no birth date and expiry date ) as I can’t use my expired passport ...
2 )	Am living outside of the U.S. ,will my tax extension be Oct 15th or Dec 15th ?
3 )	Can I submit w-7 together w 1040-NR ?
4 )	To claim losses on Disposal of Worthless / Revoked shares in 2019 against my Withholding tax on Dividend Income , I need to submit 1040-NR attach with Which copy of  B , C or D of 1042-S ?
5 )	I only can claim my $3,000 losses from year 2019 onwards , but not on Prior year of 2018 ?
6 )	Do I need to fill up Form 1040-NR page 4 : Non Effectively Connected Income with a U.S. Trade or Business (Schedule NEC) which is flat rate taxed at 30% on my Dividend Income ?
7 )	Do I still need to fill up Schedule D ? Will 4 ) 1040-NR page 4 : Non Effectively Connected Income with a U.S. Trade or Business (Schedule NEC)  be Sufficient ?
8 )	Need to fill up form 8949 to support 4 ) or 5 ) ?
9 )	form 1099B can be replace bt Tax Statement from Broker firm stating all the transaction on Disposal of Worthless / Revoked share ?

[xmasbaby0 · Accepted solution]

Before you go any further---you cannot use TurboTax if you need to file a 1040NR.  You need a different version of the software from TT's partner, sprintax.

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

[leesm99pikl]

I received Notice CP54B & CP13 dated December 6, 2021 on January 24, 2022 .

Notice CP54B : Problem with Name & Individual Taxpayer Identification Number ( ITIN ) on year 2019 Tax Return 

( i ) - On July 15, 2020 I postmarked my year 2019 form 4868 for Tax Extension till Oct 15 .

      - I received form 6513 dated September 20, 2021 mentioning my application for extension of time to file tax return has not been approved because my application was filed after the due date ( where  IRS received my July 15, 2020 postmarked form 4868 on August 6, 2020 )

     ** Can I resend the Original AR Registered Mail card for IRS's reference to reconsider my status of application for Tax Extension ?

( ii ) - I submitted form w-7 with copy of Form 4868, 1040NR with 1042-S & copy of Tax Year 2019 Year End Summary ( Form 1099B ) from Charles Schwab on my Long-Term Realised Loss of 4,211.90 ( form 8949 ) to offset my Dividend Income of 1,948.00 ( form 1040NR page 4 Schedule NEC - Tax  on Income Not Effectively Connected with US Trade ) so as to get the Refund of 584.00 With-holding  Paid .

       - On Sep 10, 2021 I received letter from IRS on assigning me the Temporary Taxpayer Identification  Number [removed]* due to my Form w-7 was rejected to expedite the processing of 1040NR tax return where I submitted with my ITIN application ( It mentioned that No Refund will be issued                 until a valid ITIN is assigned )

       ** I'm now confuse with Notice CP13 ,mentioning there is No Tax Payable & No Tax Refund ?

Notice CP13 :

( i ) Notice CP13 mentioning there is Error on my Schedule D ( 122D & 299D ) where Capital loss limited to   3,000.00 ( I'm Single )

      ** I can't find item 122D & 299D on Schedule D ,does it mean item 21 on my Schedule D of 3,000.00 ?

( ii ) Notice CP13 page 2 Tax Calculation

      ** Why is my Adjusted gross income, line 35 being 3,000 per IRS calculation ? My Only Income per Form 1040NR is 1,948.00  from my dividend  

( iii ) Notice CP13 page 2 Payments & Credits

      ** Why is my Income tax withheld , line 62 being Zero ? Not 584.00 ( 30% of my 1,948.00 dividend ) per Form 1040NR ?

      ** Why is Other credits, line 64, 65, 67-70 being 584.00 ? I only filled in line 62d on Form 1040NR  being my payment of 584.00 for Withholding Tax per Form 1042-S