Tax Services for International Organization Employees with G-4 Visa | Avoid an Audit
As a G-4 visa holder, you may have been told that you are not subject to US tax and you don’t have to file a US tax return. Unfortunately, this is NOT true.
G-4s must pay US taxes on certain types of income and may have to file US tax returns.
Frequently Asked Tax Questions by G-4 Visa Holders
It depends. If you have US income, other than your international organization salary, you may need to file a US tax return. G-4s often must file to report rental property holdings in the United States (even if the properties have losses), US dividends, and worldwide capital gains, among other items.
We assist G-4s in all aspects of tax return filings. We advise you on what you must do by law, while helping you avoid mistakes. We also help you take advantage of little-known benefits and reduce your risk of an IRS audit.
Because of the special tax rules that apply to G-4 visa holders, you typically can’t get an accurate tax return by using mass-market tax software (or tax preparers who don’t specialize in G-4 taxation).
Yes, but beware! There are pros and cons to doing this, and you will want to carefully weigh these before making the decision. We can help you with this so that you avoid unpleasant surprises. Also, we can help you file the proper election to qualify for joint filing.
I heard a rumor that G-4 visa holders must pay US tax on their worldwide capital gains. Is that correct?
Usually, yes. We can apply the proper tests to determine whether your personal capital gains are taxable in the US and help you with the reporting.
G-4s are not typical nonresidents. It’s not the G-4 visa that makes you a nonresident. It’s the fact that you are a full-time employee of an international organization. As such, your workdays do not count as physically present in the United States for the Substantial Presence Test of US residency, so you are a nonresident. However, you live in the US (>183 days), so in most cases, your “tax home” will be in the US. This is why you are taxable on your capital gains.
If you do not make special elections, then that is correct. We can help you to make the proper election so that you CAN claim deductions against your rental income and pay tax at a lower rate.
Yes. Unless you make a special election, the IRS taxes your rental income at 30% EVEN IF you had an overall loss.
If you make the election and report both the deductions and the loss, you still must complete a tax return to report everything and track depreciation and loss carry-forwards.
Have specific questions about your tax situation?
Each G-4’s situation is different. We can help you understand how the US tax rules apply to you. We can review your situation and let you know if you need to file and how to reduce your tax burden. If you hire us to prepare your tax returns, we address many of these questions as part of our tax preparation process.
Engage us for tax preparation services.
If you do not use us for your tax return preparation but would like to have a specialist review your case and answer questions, we can help you with that (note: hourly rates apply).
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Tax Services for G-4 Visa Holders
Correcting Past Tax Returns
We can help you:
- File amended (corrected) returns
- File late tax returns, with proper explanations, if needed
- Fix cases where proper elections were not filed (for example, to file jointly or claim rental deductions)
- File missing forms
- Respond to tax notices or IRS audits
Reducing Withholdings on Sale of US Home or US Real Estate
We can help you:
- Prepare calculations and file the proper forms (before closing) to reduce or eliminate the required 10%-15% tax withholding on the sales price of your home
- File forms to request an early refund of the withholding
- File income tax returns for the year of the sale to properly report the sale and tax withholdings
Pre-Retirement Tax & Estate Planning
We can help you with:
- Understanding how and when to take your pension payments to save large amounts of tax
- Evaluating tax-efficiency options, such as conversions to a ROTH IRA
- Understanding the implications of changing your citizenship, location of primary residence, residency status of your spouse, and many other issues.
Why The Wolf Group?
Since 1983, we’ve worked with clients in the United States and abroad on international tax matters. We have a long history of “cleaning up” complex tax returns, reporting foreign assets, and reconstructing financial records.
Check out our extensive team of CPAs, all with vast international tax experience.
Looking for a Nexia International Partner?
We’re an active member of Nexia International, a global network of independent accountancy, tax and business advisors with over 250 firms around the globe.
Meet Our Tax Professionals
Principal, Director of International Tax
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What our clients say
“I am very satisfied with the service at The Wolf Group. It’s very comforting to have the trust in professionals who are familiar with the G4 situation, as I have previously received conflicting and confusing guidance from most, if not all my previous tax advisors.”
“I am so glad to have found out about The Wolf Group through seminars at BFSCU—my situation as a G4 married to a US citizen is complicated but I know that I do not have to worry, as I am in good hands with extremely knowledgeable assistance. Thank you! I will be back again next year!”
“The Wolf Group has been doing our taxes for over 20 years. They are excellent professionals, very pleasant and helpful, and I highly recommend them to anyone–particularly to those with complex international tax situations, such as G-4 Visas, foreign holding, and /or off-shore accounts.”