Nonresident Alien Income Taxes 

If you are not a native of the US or live permanently in the country, you might or might not have to pay the taxes in the US. This depends on your status in the country.  

What Are Nonresident Aliens?

People from foreign countries or foreign nationals who reside in the US and earn within the country have to pay taxes on the income.

Resident Aliens

Resident aliens are the citizens of the US or foreign people living in the country who have qualified wither the green card test or a substantial presence test. Generally, people with F and J visas are considered resident aliens after completing five calendar years in the country.  

A nonresident alien does not meet the requirements to be categorized as a US citizen and has not passed the green card or substantial presence test.

Nonresident Aliens

Who Should File Under The Non-Resident Category?

Any person who has a business in the US or is engaged in some form of trading activity in the country has to file taxes under the nonresident alien category.  

Which Income Is To Be Reported?

For a nonresident alien, two different types of income must be reported while filing the taxes. One is the income from a business or trade in the US or is “Effectively Connected” to a business or trade. The other is the US sources of income that is Fixed, Determinable, Annual, or Periodical (FDAP). 

The Filing Process

Form 1040-NR Nonresident alien income tax return is the form you need to file for the tax returns. 

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