13.4 Aliens and U.S. Citizens Living Abroad: Nonresident Alien - General
I am a foreign national and came to this country on June 30th of last year.
I have a H-1 visa. What is my tax status regarding residency nonresident alien, or
resident alien?
You were a dual status alien last year. As an H-1 visa holder in the U.S. for
183 days or more, you likely became a resident, for tax purposes, as of June 30th.
For the part of the year you are a resident alien, you are taxed on income from all
sources.
For the part of the year that you are not a resident alien, you are not taxed on
income from sources outside the United States, unless the income is effectively connected
with a trade or business in the United States.
Income from U.S. sources is taxable whether you receive it while a nonresident
alien or a resident alien unless specifically exempt under the Internal Revenue Code
or a tax treaty provision. Generally, tax treaty provisions apply only to the part
of the year you were a nonresident and only if you are a resident for treaty purposes
of a country that has a treaty with the United States.
For that part of the year that you are a nonresident, file Form 1040NR (PDF), U.S. Nonresident Alien Income Tax Return. For that part of
the year you are a resident, file Form 1040 (PDF) . Refer
to Tax Topic 852 for dual-status information.
References:
I have an H-1 visa and my husband has an F-1 visa. We both lived in the
United States all last year and had income. What kind of form should we file? Do we
file our taxes separately or jointly?
You will have met the substantial presence test and will be taxed as a resident
alien for last year, while your husband is likely to be a nonresident alien. Refer
to Tax Topic 851 for an explanation of the relevant tax forms. You may file a
joint tax return if your husband makes the choice to be treated as a resident for
the entire year. Generally, however, you cannot claim tax treaty benefits as a resident
alien. Please refer to Publication 519, U.S. Tax Guide for Aliens ,
for detailed instructions on making this choice.
References:
I was an international student (F-1 visa) until October 1, then my visa
status was changed to H-1. Should I file my income tax return as a dual status or
nonresident alien?
Assuming you were not in the U.S. on your F-1 student visa for over 5 years, you
may file as a nonresident for the entire year or, if you qualify under the first year
choice, you may file as a dual status alien. Please refer to Publication 519, U.S.
Tax Guide for Aliens, for additional information.
References:
I am a nonresident alien with no dependents. I am working with my H-1 visa.
Do I file a Form 1040NR or 1040NR-EZ?
Your H-1 visa suggests that you may in fact be a resident alien or a dual-status
alien. Refer to Tax Topic 851 and Tax Topic 852 for further clarification
of your U.S. residency status, and the appropriate form to file.
A nonresident alien must file Form 1040NR (PDF), U.S.
Nonresident Alien Income Tax Return, or Form 1040NR-EZ (PDF), U.S.
Income Tax Return for Certain Nonresident Aliens With No Dependents, if you are
engaged in a trade or business in the United States, or have any other U.S. source
income on which the tax was not fully paid by the amount withheld.
You can use Form 1040NR-EZ instead of Form 1040NR if all nine of the following
apply.
You do not claim any dependents.
You cannot be claimed as a dependent on another person's U.S. tax return (such
as your parent's return).
Your only U.S. source income was from wages, salaries, tips, taxable refunds of
state and local income taxes, and scholarship or fellowship grants.
Your taxable income (line 14 of Form 1040NR-EZ) is less than $50,000.
The only adjustments to income you can claim are the student loan interest deduction
or scholarship and fellowship grants excluded.
You do not claim any tax credits.
If you were married, you do not claim an exemption for your spouse.
If you itemize deductions, the only deduction you claim is for state and local
income taxes.
The only taxes you owe are the tax from the tax tables, the social security and
Medicare tax on tip income not reported to your employer, and the household employment
taxes.
References:
I live in a foreign country. How do I get a social security number for my
dependent who qualifies for a social security card?
Use form SS-5-FS which may be obtained from the Social
Security Administration
References:
My spouse is a nonresident alien. How can I get a nonworking social security
number for her?
Each foreign person who does not have and cannot obtain a social security number
must use an IRS Individual Taxpayer Identification Number (ITIN) on any U.S. tax return
or refund claim filed. For additional information on ITINs click on Individual
Taxpayer Identification Number.
References:
I am a nonresident alien and invested money in U. S. stock market through
a U.S. brokerage company. Are the dividends and the capital gains taxable? If yes,
how are they taxed?
Generally, capital gains received by a nonresident alien not present in the United
States for 183 days or more are not taxable in the United States. Certain gains, however,
are subject to the 30% withholding rate or if applicable, a reduced tax treaty rate
on the gross amount of the following items:
1. Gains on disposal of timber, coal, or domestic iron ore with a retained economic
interest, unless an election is made to treat those gains as income effectively connected
with a U.S. trade or business,
2. Gains on contingent payments received from the sale or exchange after October
4, 1966, of patents, copyrights, secret processes and formulas, goodwill, trade marks,
trade brands, franchises, and other sale property,
3. Gains on certain transfers of all substantial rights to, or an undivided interest
in, patents if the transfers were made before October 5, 1966, and
4. Certain gains from the sale or exchange of original issue discount obligations
issued after March 31, 1972.
Dividends are withheld upon at the 30% or lower tax treaty rate. If your withholding
is not at the correct rate, a nonresident alien should file Form 1040NR (PDF), U.S. Nonresident Alien Income Tax Return , to claim a refund
of excess withheld taxes.
References:
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