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1040NR
Non-Resident Alien
Question | Answer |
---|---|
For U. S. tax purposes who is considered an alien? | An individual that is not a US citizen is considered an alien. |
What are the 2 types of aliens? | Resident and Nonresident aliens |
Who is considered a resident alien? | An individual who has been issued a lawful permanent residence card ( green card) or who satisfies the substantial presence test. |
Which income are resident aliens taxed on? | Worldwide income. |
Which form must nonresident aliens complete when filing taxes? | IRS for 1040NR. |
Which income are nonresident aliens taxed on? | on income from sources within the US and on certain income effectively connected with a trade or business within the US. |
How many categories are taxable income of nonresident aliens divided into. | Two categories, US source income that is connected to a US trade or business and income not connected to a US trade or business, |
What is the taxable rate for nonresidents US source income not connected to a US trade or business? | 30% |
What is the taxable rate for nonresidents whose income is connected to a US trade or business? | taxable at graduated rates on a net basis under IRC Section 871(b) |