If you are living and working in The US as a Nonresident and your income is more than your personal exemption amount, you are required to file a US income tax return. In this post, we have mentioned some tips on US Tax Returns for Non Residents.
Who Are Non-Resident Of US
You are a nonresident if you do not have a green card or you do not satisfy the substantial residence prerequisites. That is, during the Tax Year, you spent 31 days and a total of 183 days over the past 3 years, and calculating the total number of days by adding the total number of days spent this year in the US to 1/3 of the total number of days spent last year in the country, and then adding 1/6 of the total number of days spent in US two years ago to that total.
Taxation of Nonresident Income
You are only required to pay tax on any income that is earned in the US or otherwise realized from a U.S. source. You don’t have to pay tax on income you earned in any other country except the US. Suppose you are from India and have a business in the country and another in the U.S, then you will only be taxed on the income from the US source. Keep in mind that spouses of nonresident people can opt to claim them as dependents rather than of filing a joint return in some cases.
You must keep careful records to show the sources of all your income so that The Internal Revenue Service (IRS) can clearly see what should be taxed and what should not.
Must-Have US Social Security Number (SSN)
You are also required to have a US Social Security Number (SSN) or ITIN (Individual Taxpayer Identification Number) in order to file a US income tax return. You have to fill out Form W-7 and attach it to your Form 1040NR, and then send it to the W-7 Center. Keep in mind that must include all the required documents with your correspondence.
Must File A US Income Tax Even If You Don’t Have Any Tax Liability
Keep in mind that you have to obey with the terms of your US Visa, which mandate that you persist compliant with all the laws of the country. If you want to update the terms of your Visa or want to apply for permanent residency, then you need to prove that you are up-to-date with all of your tax obligations.
Not Required to Pay FIC Taxes
If you are a Non- Resident in the US on an F-1 Visa, a Q-1 Visa, a J-1 Visa or an M-1 Visa, you not to require to pay Medicare or Social Security taxes. Apart from this, if you are a student working at the school, you are exempt when it comes to The Federal Insurance Contributions (FICA) taxes.
You can save money on your US income tax return simply by taking benefits of guidelines contained in the treaty between the US and your home country. Remember, the taxable year starts on Jan 1 and ends Dec 31. Additionally, your US income tax returns are due on April 15 by year and have to file your return by this date. Serious penalties and interest will be assessed if you are late paying your taxes.
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