An alien is any individual who is not a U.S. citizen or U.S. national. A nonresident alien is an alien who has not passed the green card test or the substantial presence test. If you are a nonresident alien at the end of the tax year, and your spouse is a resident alien, your spouse can choose to treat you as a U.S. resident alien for tax purposes and file Form 1040 using the filing status “Married Filing Jointly.” Who must file You must file a return if you are a nonresident alien engaged or considered to be engaged in a trade or business in the United States during the year. Even if you are not engaged in a trade or business in the United States, you must file a return if you have U.S. income on which the tax liability was not satisfied by the withholding of tax at the source. You also must file an income tax return if you want to claim a refund of excess withholding or want to claim the benefit of any deductions or credits (for example, if you have income from rental property that you choose to treat as income connected to a trade or business). Tax treatment of nonresident alien If you are a nonresident alien engaged in a trade or business in the United States, you must pay U.S. tax on the amount of your effectively connected income, after allowable deductions, at the same rates that apply to U.S. citizens and residents. If you are not engaged in a trade or business, the payment of U.S. source income that is fixed, determinable, annual, or periodical is taxed at a flat 30 percent (or lower treaty rate) and no deductions are allowed against such income. You may earn both effectively connected income and fixed determinable, annual, or periodical income in the same year and they will be taxed accordingly. See alien taxation – certain essential concepts for a summary of some rules that apply to resident and nonresident aliens. Determining residency Determining alien tax status Residency starting and ending dates Nonresident alien spouse treated as a resident alien Dual status aliens Exempt individual -- Who Is a student? Introduction to residency under U.S. tax law Conditions for a closer connection to a foreign country Filing requirements and filing status Taxpayer identification number requirement Nonresident aliens exempt from U.S. tax: Foreign government-related individuals Electing head of household filing status with nonresident alien spouse Nonresident alien spouse treated as a resident alien Taxation of nonresident aliens Nonresident aliens with no U.S. trade or business Fixed, determinable, annual, periodical income Claiming tax treaty benefits Certain types of nontaxable interest income Nonresident alien withholding Central withholding agreements Real property located in the United States Foreign Investments in Real Property Tax Act (FIRPTA) – Dispositions of U.S. real property interests Nonresident aliens with a U.S. trade or business Aliens – Repeal of personal exemptions Withholding exemptions -- Personal exemptions -- Form W-4 Resident alien claiming a treaty exemption for a scholarship or fellowship Source of income -- Personal services income Yearly average currency exchange rates Persons employed by a foreign government or international organization Effectively connected income Characterization of income of nonresident aliens Claiming tax treaty benefits How to report wage income paid by foreign governments or international organizations for work performed in the United States Credits Foreign tax credit Child and dependent care credit Child tax credit and credit for other dependents (Publication 972) Other taxes Departing alien clearance (sailing permit) Persons employed by a foreign government or international organization – FICA Persons employed by a foreign government or international organization – FUTA Aliens employed in the U.S. - FUTA Aliens employed in the U.S. - Social Security Taxes Some nonresidents with U.S. assets must file estate tax returns Delays in issuing SSNs to aliens by the Social Security Administration Forms Publication 519, U.S. Tax Guide for Aliens W-8 BEN W-8 ECI Resources/help Contact my local office internationally Forms and publications Taxation of aliens by visa type and immigration status Aliens employed in the U.S. - A summary for employers Frequently asked questions (FAQs) about international individual tax matters
