Hi, I am considered a non-resident alien in the US (international student, have been in the US since end of 2024 as an f1 student), citizenship in India. I had some stock options from my previous employment in India in an MNC (it is considered incorporated into the US), all vested before I came to the US. In 2025, I ended up selling some of it (was in the US more than 183 days in 2025) and transferring the funds to my US account (to pay for my education).
I called my brokerage (charles schwab) and they said that this is considered foreign-source income as I am still a non-resident alien, and that they will not issue a 1099-B as it is considered foreign-source income.
I am having trouble understanding capital gains taxation for this. Do I pay 30% taxation on this from NEC (income not effectively connected to the US), using 1040NR-schedule NEC? Or do I not have to pay US taxes as it's foreign-source income? I searched up a lot and it all relies on whether it's NEC or not, and I am unable to understand that.
P.S. Does anyone have a contact with a non-resident alien tax expert (just to clarify doubts, not even file) that doesn't cost an arm and a leg?
Non resident alien capital gains tax on foreign-source/NEC income
byu/vi_orion intax
Posted by vi_orion
1 Comment
Based on IRC, [all capital gains from the sales of personal property (basically anything that’s not real estate) are sourced to your tax home](https://www.irs.gov/individuals/international-taxpayers/the-taxation-of-capital-gains-of-nonresident-students-scholars-and-employees-of-foreign-governments), which is the US. So, the capital gains would be US sourced income, reportable on Schedule NEC and subject to the appropriate tax rate.