Federal Tax Refund Claim under the Tax Treaty
Are you Non-US Citizen SeaFarer or International Pilot on a short-term work trip to the USA? Received W2 with U.S. Federal Withheld?
We have helped our British Nationals Clients, who have had Federal tax withheld on Form W2 by the Non-USA-based Foreign Employer. We can help you apply for a refund from the IRS under the US/UK tax treaty provision [US TAX TREATIES]. We have helped our clients to reclaim those taxes successfully.
If You are a Seafarer or International Pilot and meet the 3 conditions listed below, you are eligible to apply for a refund under the U.S/Foreign Country Treaty Position.
If Your Were In Not In the United States For No More Than 183 Days In Any 12 Months Beginning Or Ending In The Tax Year.
If Your Wages/income Was Paid By, Or On Behalf Of, An Employer Who Is Not A U.s. Resident.
If Your Income Received Was Not Borne By A Permanent Establishment That The Employer Has In The United States.
REAL CASE SCENARIO:
Mr. Johnson is a British National who is Seafarer by profession and works for Singapore Incorporated Company with a Valid Foreign Employer Identification Number [EIN]. For the 2020 U.S. Tax Year, He received a Form W2 with a Wages/Salary of $35,000 reported and Federal Tax Withholding of $6,000/-. Mr. Johnson was on a trip on the Ship vessel by the name Deep Water, and his USA region workday was for about 110 days. Mr. Johnson approached our team with the U.S. tax return assistance as a Non-resident Alien.
Being a United Kingdom-based permanent resident, he does qualify for the tax treaty claims provision under the USA/UK tax treaty agreements; our team analyzed the possible scenarios and eligible conditions criteria. Mr. Johnson did meet all three conditions of being resident in the United States for less than 183 days in the 2020 tax year; Singapore Incorporated Company paid his wages. His Income was paid by the Employer who does not have a permanent establishment in the United States. So, Under the treaty US/UK provision. Mr. Johnson qualifies for a full refund of $6000 federal tax withheld on his Form W2 by filing a 1040NR tax return and completing all the relevant tax treaty compliance forms.
Our team specializes in international expatriate U.S. personal tax return service. If you need assistance with US 1040 filing for refund claim/FATCA Compliance work/FBAR FINCEN114 Filing, ITIN/ Form W7 Application/EIN/Form W8BENE or Certified Acceptance Agents [CAA] services/1040NR U.S. tax filing for refund claim of excess 1042S / 8288A/ 8805/ W2/ 1099. We are happy to assist our clients in a timely, efficient, and cost-effective way