U.S. Tax on Income of Aliens and Investors - Tax Payment, Filing Tax Returns
Resident Aliens - Tax Liability and Filing Requirements
A resident alien’s income is generally subject to tax in the same manner as a U.S. citizen. If you are a resident alien, you must report all interest, dividends, wages, or other compensation for services, income form rental property or royalties, and other types of income on your U.S. tax return. You must report these amounts whether from sources within or outside the United States.
Nonresident Aliens - Tax Liability and Filing Requirements
A nonresident alien usually is subject to U.S. income tax only on the U.S. source income. Under limited circumstances, certain foreign source income is subject to U.S. tax. A nonresident alien’s income that is subject to U.S. income tax must be divided into two categories: (1) Income that is effectively connected with a trade or business in the United States, and (2) Income that is not effectively connected with a trade or business in the United States.
The difference between the two categories is that effectively connected income, after allowable deductions, is taxed at the same graduated rates used for U.S. citizens and residents. Income that is not effectively connected is taxed at a 30% flat rate or a lower treaty rate.
U.S. Tax On Aliens - IRS Forms And Returns Required
Resident at the end of the year. Must file Form 1040. If you are a dual-status taxpayer who becomes a resident during the year and who is a U.S. resident on the last day of the tax year. Write "Dual-Status Return" across the top of the return. Attach a statement to your return to show the income for the part of the year you are a nonresident. You can use Form 1040NR or Form 1040NR-EZ as the statement.
Nonresident at end of year. Must file Form 1040NR or Form1040NR-EZ if you are a dual-status taxpayer who gives up residence in the united States during the year and who is not a U.S. resident on the last day of the tax year.
Failure to File Or Pay Tax May Result in Loss of LPR Status
Under U.S. immigration law, a lawful permanent resident who is required to file a tax return as a resident but fails to do so may be regarded as having abandoned status and may lose permanent resident status.