I'm a PhD student filing a tax return for 2018 on 1040NR (non-resident alien) - married filing separately. In 2018 - I had a considerable capital loss (there were no gains). when filling my tax return on Galcier (online software) - it seems like the loss did not offset any taxable income (my salary).

on line 14 on 1040NR ("Capital gain or (loss). Attach Schedule D (Form 1040) if required. If not required, check here") the software did not fill anything. In addition, the transactions (and the loss) are detailed by the software on SCHEDULE NEC ("Capital Gains and Losses From Sales or Exchanges of Property"), but I guess no schedule D?

My questions are:

  1. are non-resident aliens allowed (for 2018) to offset taxable income with losses - meaning should my taxable income be lowered by the $1,500? Or, is it a change that was instituted this year that doesn't allow this for non-resident aliens? If I am allowed to offset income - how do i do that?

  2. Are non-residents aliens allowed to carryover losses to later years? If so, how do I do it on my tax return?

  3. If non-resident aliens are not allowed to carryover losses for later years - can we at least offset losses in a certain year with gains IN THE SAME YEAR (so are on the same tax return) - so if i have gains in a certain years, as well as losses, will they offset each other?

Thank you very much for any help!


I've never heard of Glacier before this, but I looked it up and found this: https://www.glaciertax.com/

It seems like this software may not know how to handle capital gains/losses.

Under the section "What Does GTP Do?" it doesn't mention this, and the section "GTP Provides Everything You Need!" lists a bunch of tax forms it supports, but Schedule D is not on there.

I don't know enough about your situation, but might this apply to you?

Nonresident alien students and scholars and alien employees of foreign governments and international organizations who, at the time of their arrival in the United States, intend to reside in the United States for longer than 1 year are subject to the 30 percent taxation on their capital gains during any tax year (usually calendar year) in which they are present in the United States for 183 days or more, unless a tax treaty provides for a lesser rate of taxation.

This assumes that such capital gains are not effectively connected with the conduct of a United States trade or business.

These capital gains would be reported on page 4 (not page 1) of Form 1040NR and would not be reported on a Schedule D because they are being taxed at a flat rate of 30 percent or at a reduced flat rate under a tax treaty.


(for USA Tax 2018) If your capital gains/losses are based on your stocks/property buying and selling in USA, you can file schedule D.

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