#1. G-4 Visa Holders May Be Required to Pay 30% Capital Gains Tax

 

Generally, nonresidents of the United States are not taxable on capital gains recognized from the sale of stocks, bonds and mutual funds. However, there is a special rule that applies to G-4 visa holder nonresidents. If a G-4 visa holder is physically present in the U.S. for 183 days or more during the calendar year, he/she is taxable at a flat 30% tax rate on their worldwide capital gains from the sale of securities. This sometimes results in double taxation if a foreign country also taxes these capital gains. 

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#2. Filing Status: G-4 Visa Holder Married to their G-4 Dependent Spouse 

 

G-4 visa holder employees of International Organizations (I/Os) are not allowed to file a joint income tax return with their G-4 dependent spouses because both are considered non-residents. Married nonresidents who have a tax filing requirement must each file a U.S. Form 1040NR (not Form 1040) with filing status “Married Nonresident Alien”.

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#3. Filing Status: G-4 Visa Holders Married to U.S. Persons

 

G-4 visa holder employees of International Organizations are allowed to file a Form 1040 income tax returns as “Married Filing Joint” if his/her spouse is a U.S. citizen or green card holder. However, since only two U.S. tax residents may file a joint income tax return, the law provides that an election (called the 6013(g) election) is required in order to elect for the G-4 nonresident to be a U.S. tax resident. If such election is not made and the spouses file jointly, the joint tax return may be deemed invalid.

 

Please contact Dale Mason, if you would like to schedule a consultation regarding any of your tax needs.