Common Tax Mistakes Made by U.S. Nonresident Working for International Organizations

The U.S. tax laws that relate to U.S. income tax nonresidents are complex and often difficult to apply in practice. Here are some of the most common errors made by nonresidents who work for international organizations in the United States: #1. Failure to Pay Tax on Capital Gains Derived from the Worldwide Sale of Securities  Although U.S. nonresidents working in the United States are exempt from income tax and self-employment tax related to wages earned from international organizations, they are generally subject to tax on certain other types of U.S. source income, including capital gains from the sale of securities. Generally, the law provides that capital gains from the sale of securities (i.e. stocks, bonds, mutual funds, etc.) are not taxable to a nonresident if the capital gain is “foreign source.” However, capital gains from the sale of personal property (i.e. securities) is deemed to be sourced to the United … Continue reading Common Tax Mistakes Made by U.S. Nonresident Working for International Organizations