I was on a visitor visa during TY2024, but received bonus from past employment in 2023. I moved out of the US but earned income abroad. WIll that income be taxed in US?

[pk]

@SRIRAM-VARADAN , just to be sure that I am understanding the situation correctly:

(a)  you  NRA, were  in the USA  in 2023  ( what visa , and how long were you in the USA ??) with work visa.

(b) You filed your 2023 per usual  as Resident  for Tax purposes  (? ).

(c) In 2024 you received a bonus  from your  US employer -- based on 2023 employment /

(d) you were in the US at the time as a visitor  -- which visa ?  Did you actually leave the US at the end of your work visa ?  How long were you in the US during 2024 ?

(e) Which country are you a citizen of  (India ? ) ?  Where did you earn your 2024 income ?  Did you file a tax return in that country ?  Did you include the US bonus therein ?

(f) Do you own home etc. in the USA , ?  How about Bank / Investments?  How about  family connections ?

As you can see , I need answers to my questions to determine your connection to the US during 2024.  Trying to determine if you are to be treated as a  RA or NRA for the tax year 2024.

In any case, the bonus will be treated as US source income and  taxed by the US.  The question is whether US should be taxing your world income or just the US sourced  income.  Thus the questions about  your past history and financial connection to the US.

I will circle back once I hear from you -- yes ?

pk

[SRIRAM-VARADAN]

Thank you so much for getting back. Here are my responses to the questions

a. IN 2023, I was on a work visa until Aug 2023. After that, I moved to a visitor visa.

b. Yes in 2023 I filed my returns as a resident

c. Yes, the bonus received in 2024 was a partial bonus for my employment in the year 2023. My employment ended in June 2023

d. After I got laid off in June 2023, my work visa expired in Aug 2023. I shifted to a visitor visa which expired in April 2024. So in the TY 2024, I was on a visitor visa

e. I am an Indian citizen snd I earned salary income from UAE from Sep 2024. UAE does not have income taxes so I did not file taxes in UAE

f. I own a home in the US. I stayed in the home until April 2024. I rented it out from June 2024. I also own stocks in the US and a bank account

I hope this helps. 

Thanks again!

[pk]

@SRIRAM-VARADAN , Namaste  SriRam ji.

1.  based on your answers to my question, the usual way to handle the  bonus  income ( based on work performed in 2023  but received in  2024 ) would be through an amended 2023 return.  I am assuming here that  your employer ( for 2023)  has provided you with tax document showing this bonus  ( generally reported  with a 1099-NEC ) .    This would mean that you would be subject to SECA taxes  ( Equivalent to FICA but at 15.3% ,)   in addition to State and federal taxes .

Some employers  add the bonus  on the W-2  for the following year.  

2.  Since  you had moved out of the country  some time around April of 2024, your visitor visa having expired, you probably did not meet the  SPT  ( 183 days of presence counting all days present in 2024 + 1/3rd.  the  days present in 2023 + and 1/6th. the days  present in 2022 )  for the tax year 2024. Thus  being a NRA for the tax year 2024,  you file a form 1040-NR ( not supported by TurboTax -- use a  service like SprinTax, a tax professional or ?? ) and taxed by US ONLY on US sourced income  ( in your case , rental  income, interest/dividend etc. ).

3. Note that I don't know how long you have been in the USA.  If you are treated as a long-term  resident of the USA, then there  are  expatriation  permit/tax implications.  Also your ownership of  residential property. bank accounts, investment accounts etc. may suggest  that you  have substantial US financial connection  and therefore should be treated as a Resident for tax purposes for 2024 ( thus brining your world income under  US tax purview ).

 Perhaps you should consider having a discussion with a tax professional  familiar with international  taxation   ( this forum  is not a substitute for such discussion ), especially if you intend to maintain  your financial connections (to US) for long term.

Is there more I can do for you ?

Namaste ji

pk