Gergana Alferov is a resident of Bulgaria (visa number 38755219). She arrived in the
United States in F-1 immigration status on September 1, 2022 as a full-time student. She
started a new job with the university bookstore on January 20, 2023. College Town
University reports all student income on Form W-2 $15,220. Miss Alferov failed to
respond to the university in time for them to properly issue Form 1042-S for her treaty-
exempt income.
- Is Gergana allowed to exclude her wages of $9,000 as a treaty benefit on Schedule
OI?
Give this one a try later!
Yes, she can exclude her wages on Schedule OI
Elena, in F-1 immigration status from Romania, is on the basketball team. She arrived in
the U.S. on June 18, 2023 on a full athletic scholarship that includes $10,000 for her
room and board and $35,000 for tuition and fees. What amount will be taxable on her
Form 1040-NR?
, Give this one a try later!
$0; No limit
Capital gain income is only reportable on Form 1040NR if the gain is US source
income. The sale of stock and the corresponding capital gain from such sale is
typically sourced to the residence of the seller. So if the seller is an NRA, typically
such gain is foreign source income, not reportable on Form 1040NR.
Give this one a try later!
Rule
Margarita, who is a nonresident alien and is in the United States in J-1 immigration
status, spent $4,400 on qualifying education expenses. She is not eligible to claim an
education credit on her tax return.
Give this one a try later!
True; A nonresident alien cannot claim an education expense
So here, if an NRA is selling stock, the capital gain should be foreign source, not US
source. The $100 capital gain on the sale of US stock is typically not US source
income of an NRA - instead it is foreign source income. Accordingly none of the gain
from the sale of the stock should be reportable by the NRA on Form 1040NR
Give this one a try later!
United States in F-1 immigration status on September 1, 2022 as a full-time student. She
started a new job with the university bookstore on January 20, 2023. College Town
University reports all student income on Form W-2 $15,220. Miss Alferov failed to
respond to the university in time for them to properly issue Form 1042-S for her treaty-
exempt income.
- Is Gergana allowed to exclude her wages of $9,000 as a treaty benefit on Schedule
OI?
Give this one a try later!
Yes, she can exclude her wages on Schedule OI
Elena, in F-1 immigration status from Romania, is on the basketball team. She arrived in
the U.S. on June 18, 2023 on a full athletic scholarship that includes $10,000 for her
room and board and $35,000 for tuition and fees. What amount will be taxable on her
Form 1040-NR?
, Give this one a try later!
$0; No limit
Capital gain income is only reportable on Form 1040NR if the gain is US source
income. The sale of stock and the corresponding capital gain from such sale is
typically sourced to the residence of the seller. So if the seller is an NRA, typically
such gain is foreign source income, not reportable on Form 1040NR.
Give this one a try later!
Rule
Margarita, who is a nonresident alien and is in the United States in J-1 immigration
status, spent $4,400 on qualifying education expenses. She is not eligible to claim an
education credit on her tax return.
Give this one a try later!
True; A nonresident alien cannot claim an education expense
So here, if an NRA is selling stock, the capital gain should be foreign source, not US
source. The $100 capital gain on the sale of US stock is typically not US source
income of an NRA - instead it is foreign source income. Accordingly none of the gain
from the sale of the stock should be reportable by the NRA on Form 1040NR
Give this one a try later!
