Short Term Capital Gains Taxes when moving out of the US permanently with H1B

[TitniumWolf]

I moved out of the US in April 2026 for good and have been outside ever since.

1) I was on H1b visa when I moved out in April 

2) I had a W2 from Jan to March of the tax year 

3) From Apr to the end of tax year, I only have short term capital gains on the sale of my US stocks 

When I file for my taxes this year, how would my short term capital gains taxes on sale/trading of equities be treated? 

[pk]

@TitniumWolf , 

(1) you say you moved out of USA on 4/15/2025  (?)

(2) your H-1B was still valid

(3) When did you enter the USA --- because a long-term resident  has more implications.  US wants to make sure that all taxes  are paid/collectible,  depending on length of stay some assets may need to given mark-to-market ( for US taxes), exit paperwork must be filed with both IRS and  USCIS.

Need more details, including your current tax-home and country of citizenship--please

[TitniumWolf]

I moved out on April 1st 2025

My h1b was still valid when I left (but paused I think since I was unemployed for 2 months and then left the USA)

 I’ve stayed in USA since 2019 when I was a student. I have now moved to my new tax home and country of citizenship India

[pk]

@TitniumWolf , thank you for your answers.  Namaste ji

Should I then assume that your visa was adjusted to  H-1B sometime in 2022/2023  ( you were exempt till 12/31/2023 or when adjusted to H-1B).  Please confirm, just for completeness.

So the best guess would be that you were a dual status in 2023, Resident for 2024 and had about 90 days in 2025 towards SPT.  If the above is correct ( again correct me / my assumptions ), then for 2025  you would again be  dual status -- 1/6th of days present in 2023, 122 days for 2024  ( 1/3  of days present ) and 90 days in 2025.

Thus you will file  a form 1040  covering your world earnings through 03/31/2025  and a form 1040-NR covering ONLY US- sourced  income.  Note that TurboTax does not support form 1040-NR -- so you can either use a service like SprinTax or local CPA ( since everybody in India seems to use CPAs for Tax filing) familiar with  Tax treaty.  It is not difficult and the form 1040-NR is available in fillable pdf  at www.irs.gov. 

(1) Note that this would mean you have  file by mail --  The form 1040 needs to be marked at the top "  DUAL STATUS FILER ", both 1040- and 1040-NR needs to signed and dated and together mailed to the IRS.

(2) Note  that you have to use Itemized deduction because your 1040 does not cover a full calendar year.

(3)  Note  that  you also have to file a state return ( short year), covering the resident period i.e. till you left the country.

(4) Your employer and/or you have to in form USCIS that you have left the country and that your H-1B is terminated.

The US based stocks/bonds etc. that you own and dispose off will come under the tax treaty.   Also any taxes imposed by US on this ( i.e. post your departure from the US ) income is eligible for Foreign Tax Credit in India.

This is the general situation / comment. 

If you need more detailed  answer  to your specific situation, you can either add to this thread or PM me   ( NO PII -- Personally Identifiable  Information, please ).

Does this make sense ?   Is there more I can do for you ?

Namaste ji

pk