US Non-resident aliens who need to file an income tax return must use Form 1040NR or, or Form 1040NR-EZ if qualified. Here are some very common questions asked by US non-resident taxpayers.
What is the Taxable Income?
A non-resident typically is subject to federal tax for nonresidents only on U.S. source income. But, the general rules for finding U.S. source income that applies to most non-resident people are shown below:
Type of Income
|
Source Determined By
|
Payment
received for Personal Services
|
Where
services are performed
|
Interest
|
Residence
of payor
|
Royalties such as Patents, Copyrights or any other
|
Where
property is used
|
Rent
|
Where
is your property located
|
Pensions
due to personal services performed
|
Where
services were performed during an NRA
|
Scholarships
and Fellowships
|
Usually
residence of payor
|
Dividends
|
Type
of Corporation (U.S. or overseas)
|
Royalties:
Natural Resources
|
Where
property is located
|
What Happens If I Fail To File My Taxes?
If you don't file, then the Internal Revenue Service can assess penalty and interest or even can seize U.S. bank assets for repayment. Penalties and Fines can amount to more than the original tax debt. Apart from this, there can be immigration penalties for failing to file taxes. Green card holders are frequently asked to show proof of tax filing for previous years in the U.S. You can download ax forms for previous years from the IRS website
If I'm unable to file by the tax deadline, what do I do?
In this case, you have to File Form 4868, which extends the deadline to file until August 15th. If you owe any taxes, then mail your tax payment by April 15 or you will be weighed a penalty and interest as of April 15th. Also, mail Form 4848 and payment check if making a payment to Internal Revenue Service, P.O. Box 37008, Hartford, CT 06176-7008. Keep in mind that sign and date the forms as well as keep copies for your records. But, you need to mail Form 4868 if not making a payment, to Dept. of the Treasury, Internal Revenue Service Center, Kansas City, MO 64999-0002.
I worked for a very short time last year and didn’t earn very much. Do I still have to file tax?
Maybe, if the total sum of your income (U.S. source) was less than the personal exemption ($4,200 for 2018) you are not required to file. But, if you had any taxes pending, you have to file Form 1040NR or IRS Form 1040NR-EZ to get a refund of these taxes and have to still file Form 8433.
My young kid lives with me. Can I claim the Child Care Tax Credit?
Keep in mind that only those students in non-resident tax status who are from one of the countries that can claim dependents can claim the Child Care Tax Credit.
To whom do I make the check payable?
Make your check payable to the United States Treasury and ensure that your social security number is on the check and you write, "For 2018 Income taxes" that in the memo section.
Read More : Guide On US Federal Tax For Non Residents
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