Resident And Non Resident U.S. Taxes Explained

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Resident And Non Resident U.S. Taxes Explained
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• When filing your taxes as a resident or
  nonresident alien of the U.S. youll find that
  there are some differences between how you are
  required to fulfill the rules, and how a citizen
  of the U.S. is. There may in fact, be some income
  tax exemptions for certain individuals who are
  not U.S. citizens, depending on their
  circumstances. Lets take a closer look at the
  definition and tax treatment of such individuals
• Who is classed as a resident alien and who is
  classed as a non-resident alien?
• Those non-U.S. citizens holding green cards or
  who have resided in the

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• country for a minimum of 183 days over a period
  of 3 years (including the current year), are
  classed as resident aliens. Those individuals who
  dont hold green cards but who are in the country
  legally such as tourists are classed as
  non-resident aliens.
• How is the income of non-resident aliens taxed?
• Income earned or realized from a U.S. source, is
  taxable for non-resident aliens, but they are not
  legally required to pay taxes on any income that
  is generated from overseas. Income from
  investment that is not from a U.S. source is
  usually given a tax rate of 30.

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• Instead of filing a joint return, the spouses of
  non-resident aliens may claim them as dependents
  in certain circumstances.
• Its imperative that all non-resident aliens keep
  track of their earnings and can show all relevant
  paperwork to the IRS at any given time, making
  their task of verifying what should be taxed and
  what is exempt, a whole lot clearer.
• How is the income of resident aliens taxed?
• All forms of income received by the resident
  alien are taxable, no matter whether it is
  foreign or domestic, and includes payments that
  may have

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• been received from a pension or foreign
  government. If they qualify however, some
  resident aliens may be able to claim the foreign
  earned income exclusion.
• Passing the residence test for resident aliens
• All resident aliens must carry a green card or
  have met the requirements of the residence test
  to remain legally in the U.S. The alien taxpayer
  must live in the U.S. for at least 31 days of the
  year and have been in the country for at least
  183 days of the past 3 years, to pass the
  residence test.

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• That said, the test will only class a day of
  residence within the U.S. as a full day of
  residence for the current year. Each day of
  residence will only be classed as one-third of a
  day of residence in the previous year, and then
  one sixth of a day in the year preceding that.
  This means that the total number of days classed
  as being of residence in the country during the
  previous 2 years must be divided by 3 or 6 to
  reach a total the final total must then be equal
  to at least 183.

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• Who can you turn to for more information and
  guidance?
• Any tax professional with adequate
  qualifications, knowledge and experience will be
  able to give you the most up to date information
  regarding your income tax as a resident, or
  non-resident alien. They will ensure that you
  dont pay more than you are legally required to,
  and that you file in a timely manner while
  staying tax compliant. Its always worth
  investing in the services of a tax professional
  when it comes to something as important as your
  taxes, as theyll give you peace of mind and
  enable you to be free from the worry of getting
  into trouble with the IRS.

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• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax services Miami Beach.
  If you are looking for individual tax preparation
  in Miami Gardens, Heyer Associates would be a
  right option.