>
Date: Tue, 26 Feb 2002 17:34:55 -0800 (PST)
> In a few months, I'll be leaving for NYC, and I am planning my
> travel and administrative stuff. I have a question related to
> having a Swiss bank account for non-resident aliens and resident
> aliens (in the sense of IRS).
>
> In the first year, I will be a NR alien, therefore I should not
> be taxed for any income not related to USA, which is for example
> the case of my bank account in Switzerland. How can I manage to
> have the anticipated tax taken in Switzerland (35%) back?
>
> A similar quesion is for the following years, when I will be
> a resident alien. There at least I will have to mention this
> account, since I would be taxed on the income from the whole
> world.
I went through this in 1994-95. Since then, the tax treaty between
Switzerland and the US has changed. So take my answer with a grain of
salt. But, as far as I know this is still the right procedure.
The residency rules in Switzerland and in the US are different. For
Switzerland, as soon as you leave, you are not a resident any more. In
the US, you are a resident if you spent more than 6 months in the US in
a given year, otherwise you are not a resident.
If you move before June, you will have spent more than 6 months in the
US, therefore you will be taxed as a resident and there are no
problems. (See below for the procedure).
If you move after June, you will have spent less than 6 months in the
US, and you will be a resident neither of Switzerland nor of the US.
You have 2 options: (1) forget about your 35% tax for 2002 or (3) Ask
for a "first year choice".
Even though you are an NR in 2002, the US will let you you file as a
resident if you can prove that you will be a resident in 2003. For
this, you will have to postpone your tax return late enough in 2003 so
that you are considered a resident (note, you do not have to wait
6 months, because you can count days spent in the US in 2002 as 1/3).
You will also have to send a letter to the IRS stating that you wish
to take the "first year choice". If you need to postpone your tax
return after the due date (April 15), you will have to fill Form 4868
before the due date. (See Pub. 519 for details).
Once you can file as a resident (and the following years), you have to
declare your Swiss interests on your US tax return and then file
Form 82 I with the Swiss administration to get your 35% back. Note,
if you have Swiss stocks or a stock portfolio, you'll get only 20%
back, unless it is one of the following portfolio:
http://www.estv.admin.ch/data/dvs/druck/kurs/pdf2002/form25a.pdf
in which case you have to fill form 25 A and you'll get 35% back.
For more info, forms, etc.:
> However, I will still have some money kept here, e.g. 2nd pillar,
If you put your 2nd pillar in a special account ("compte de libre
passage"), there are no taxes and you do not have to declare anywhere.
Good Luck,
Marc Viredaz
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Received on Wed Feb 27 2002 - 01:42:25 PST
