1040 Non resident alien tax filing - questions

Till 2020 Aug - USA resident. Filed US tax returns in Jan 2021.

For past 1 year , I am living in India due to personal reasons. I don’t have any income in 2021, so no W2. I invested in shares , so planning to sell them but with a loss.
I think i may need to file 1040NR in Jan 2022

Can someone guide me which site can help me in filing 1040NR ? I may have to show loss in stocks and also I have a USA born kid - did received child tax credit in my bank account.

Questions:

  1. Do i need to file state tax (even if i am away from USA physically for more than a year) online ?
  2. Can i claim the child tax credit for USA citizen kid or should i return back the money to IRS ?
  3. Which website is reliable for filing 1040NR from india ?
  4. I have STOCK HOLDINGS in brokerage - should i close them and take the money out ? should i apply for W-8BEN - what if they don’t have online filing for that ?
  5. What documents should i collect and keep for 1040NR filing ?

Turbotax or Taxact are one of the few popular online tax filing services.

Most probably not as you will fail the state residency test.

You should be able to claim child tax credit. However I recommend consulting with a CPA as the US tax codes are very complex and you don’t want to miss on any NR deductions or end up filing an erroneous tax return.

I would not file online if I were you and just pay few hundred $$$ to a CPA to properly file the 1040NR.

This is your choice. It also depends on if you want to avoid any losses if you sell your investments now vs keep them as is for few years and earn some profit before selling. If you keep, you may have to deal with filing US returns (if any dividend income etc) and claiming tax credit under DTAA.

2 Likes

Thanks ! Thats very helpful. Now i have another ask - should i inform my brokerages that i am physically outside USA for more than a year and requesting them to consider W-8BEN ?

I had an account with robinhood - they emailed me asking me to submit my residency proof and they confirmed that they wont deduct any tax. Any pointers what i need to do if i have an account with etrade ?

Yes.

Same as robinhood. You can fill W8Ben online, esign and submit. Talk to their customer service toll free no.