What is the difference between a resident alien and a nonresident alien for tax purposes?
A nonresident alien is taxed only on his/her income from United States sources, using special tax withholding, reporting, and filing guidelines different than those applied to United States citizens and resident aliens for tax purposes. Resident aliens for tax purposes are taxed on their worldwide income, the same as United States citizens.
A. An alien is an individual who is not a U.S. citizen. Aliens are classified as resident aliens and nonresident aliens. If you are an alien, you are considered a nonresident alien unless you meet 1 of the 2 tests: 1) Green Card Test or 2) Substantial Presence Test. Resident aliens are taxed on their worldwide income, the same as U.S. citizens. Nonresident aliens are taxed only on their U.S. source income. Q. What is a dual-status taxpayer? A. A taxpayer has a dual-status tax year when he/she has been both a resident alien and a non-resident alien in the same year. As a general rule, if you have been in the United States for 183 days or more, you have met the substantial presence test and you are taxed as a resident. However, for the part of the year that you were not present in the United States you are taxed as a nonresident. Q. My spouse and children are nonresident aliens. Do they need social security numbers? A. A social security number (SSN) must be furnished on tax returns, stat
For tax purposes, an alien is an individual who is not a U.S. citizen. Aliens are classified as resident aliens and nonresident aliens. Resident aliens are taxed on their worldwide income, the same as U.S. citizens. Nonresident aliens are taxed only on their U.S. source income. What is the difference between the taxation of income that is effectively connected with a trade or business in the United States and income that is not effectively connected with a trade or business in the United States? The difference between these two categories is that effectively connected income, after allowable deductions, is taxed at graduated rates. These are the same rates that apply to U.S. citizens and residents. Income that is not effectively connected is taxed at a flat 30% (or lower treaty) rate. I am a student with an F-1 Visa. I was told that I was an exempt individual. Does this mean I am exempt from paying U.S. tax? The term “exempt individual” does not refer to someone exempt from U.S. tax. Y
For tax purposes, an alien is an individual who is not a U.S. citizen. Aliens are classified as resident aliens and nonresident aliens. Resident aliens are taxed on their worldwide income, the same as U.S. citizens. Nonresident aliens are taxed only on their U.S. source income. What is the difference between the taxation of income that is effectively connected with a trade or business in the United States and income that is not effectively connected with a trade or business in the United States? The difference between these two categories is that effectively connected income, after allowable deductions, is taxed at graduated rates. These are the same rates that apply to U.S. citizens and residents. Income that is not effectively connected is taxed at a flat 30% (or lower) treaty rate. I am a student with an F-1 Visa. I was told that I was an exempt individual. Does this mean I am exempt from paying U.S. tax? The term “exempt individual” does not refer to someone exempt from U.S. tax. Y
