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I am a non-resident alien but have U.S. rental income. What is my U.S. tax situation?

April 26, 2017Alien income non-resident rental tax

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I am a non-resident alien but have U.S. rental income. What is my U.S. tax situation?

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You have two choices. You can have your U.S. rental income subject to a 30% withholding tax and you have no further requirement to file a U.S. tax return or pay additional U.S. taxes. You may, however, choose to consider your rental income as an effectively connected U.S. business activity. That requires you to file a U.S. tax return and itemize your rental income and expenses. See Publication 519, “Tax Guide for Aliens”, for information. Remember, filing a U.S. return requires an Individual Tax Identification Number (ITIN – Form W-7).