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US Taxes for Non US Citizens

Alien or a Non US Citizen

For tax purposes, an alien is an individual who is not a U.S. citizen. Aliens are classified as
nonresident aliens and resident aliens.

Resident Alien

Resident aliens is usually taxed on their worldwide income, the same as U.S. citizens.

Non-Resident Alien

Nonresident aliens are taxed only on their income from sources within the United States and on certain income connected the trade or business they might have conducted in the United States.

Dual Status Alien

You can be both a Resident and Non-Resident in the same year, and hence a Dual Status Alien for tax purposes in a certain year.

So how do you determine if you are a Resident or a Non-Resident Alien?

Certain litmus tests will determine if you are a Resident or Non-Resident for Tax purposes. A lot of times, people confuse tax laws for Non U.S citizens with immigration laws. This is a grave mistake, and often leads to taxes being erroneously filed, and ultimately rejections, audits or heavy fines/penalties from the IRS.

Three tests basically determine if you would be a Resident or Non-Resident for Tax purposes:

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