Tax on Dividends and Partnership Distributions for G4 Visa Holder

[Matt Vicky]

Dear All,

I am G4 Visa holder living in US, I earn ~$2,000 in dividend per year and $8,000 in distributions from my equity investments in listed MLPs per year (which i was told would come under K1 filing, not sure what exactly it is though). 

I understand that any one making less than $12,000 gross income per year is tax exempt, so can you confirm that i do not need to file any tax returns, many thanks in advance

[Anonymous_]

@pk ?

[Critter-3]

You have 2 issues ... first the K-1 form ... it is a consolidated reporting form issued by a partnership.  On it will be ordinary income, dividends, interest, cap gains, etc.  so basically the partnership uses one form to pass thru income and deduction items to it's partners.

Next, the requirement to file a return.  That will totally depend on the filing requirement for your filing status and your total income for the year.  When the K-1 is issued by the partnership (usually in March however it could be as late as September if they go on extension) you will have the answer to this question. 

[Matt Vicky]

Thanks for the response, but given the total tavable income is less than the standard deduction of $12.9K, I do not have to file the tax return in the first place right?. As  G4 visa holder, my salary is already tax exempt.

Hence these dividends and distributions less than 12.9k doesnt require me to file a tax return?

[Matt Vicky]

Given the total taxable income is less than the standard deduction of $12.9K, I do not have to file the tax return in the first place?

Hence these dividends and distributions less than 12.9k doesnt require me to file a tax return?

[Critter-3]

That is for you to determine ... I cannot give you a difinative answer on that question just info for you to make your own decision. 

[pk]

@ Matt Vicky, you did not tell us which country are you a citizen of and whether you are married to a US citizen. However, , generally diplomats / staff of a an instrumentality of a foreign govt. are regarded as " exempt" individuals i.e. they are exempt from counting days present for purposes of Substantial Presence Test ( SPT). Thus these taxpayer are considered as Non-Resident Aliens and report any US sourced / connected income on form 1040-NR. The implication of this is that they are taxed a flat 30% on taxable passive income. Form 1040-NR does not allow for standard deduction ( only itemized deductions are recognized ). Thus your whole argument / logic about not required to file because of recognizable income being below the standard deduction is not applicable here . pk