US Income Tax For Us Citizens Living Abroad

Detailed Tax Guide Us Nonresident Aliens

This informative post is dedicated to help you comply with US tax laws if you are a foreign national working in the US. In addition to this, if you are a nonresident person working in the United States or doing business here, you are required to file a tax return. In order to "file a tax return", you have to send your completed and signed tax return to the IRS (the Internal Revenue Service), either through the mail or electronically Who Are Resident And Nonresident Aliens?

Resident individuals are non-U.S. citizens who have been in the country for at least 183 days over 3 years or who have green cards. On the other hand, nonresident aliens are those people who are legally present in the U.S. but they do not have green cards. Non-resident individuals for tax purposes have only 2 filing statuses to choose from: 1) single and 2) married. Taxpayers who are married have to file their US tax return separately from their spouse.

Taxes For Non-Resident As a non-resident, you have to pay income taxes to the IRS on the income that is connected to the U.S. only, which generally includes the money you earn. However, the IRS has no authority to impose a Federal Tax for Non Residents on the income that you earn in your home countries or any foreign country. If you work in a state that has an income tax, then you have filed a state tax return as well. This is a separate document you have to prepare and send to a state tax authority. When you are preparing your U.S. tax return, use Form 1040NR, if eligible:

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Despite the form you use, you will only report US-source income unlike American taxpayers living abroad who need to report both US source income and Foreign sourced income.

Like resident aliens and U.S. citizens, there are deductions you can claim to reduce your taxable income.

All non-resident forms like 1040NR, 8843 and 1040NR-EZ, are available with instructions on the IRS website.

Major Exceptions to the Residence Test

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Exempt Person

People who must temporarily reside within the U.S. for certain reasons can also claim an exemption for the days spent stateside simply by filing Form 8843. People who are eligible to claim this exemption include Students, Teachers, Trainees and people related to a foreign government, Professional athletes, etc.

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Medical Exception

If you are involuntarily detained in the U.S. because of medical reasons, then you can claim a medical exemption. For instance: If you suffer a heart attack while in the U.S. and are hospitalized for three months, then you can file Form 8843 as well as list the days spent in the form for medical reasons under this exemption.

USA Tax Return File with USA Expat

Keep in mind that the internal revenue system will impose penalties if your tax is due. But the terms of your visa need you to comply with all laws of the US, including the requirement to file an income US tax return. Apart from this, you may have to show proof that you filed if you want to change your visa status, or want to become a permanent resident. If your tax situation is very complex, then look for a professional tax return preparer.