What To Know Non-Resident in US About Tax Return

Filing a tax return in the US is in the best interest of everyone who has earned U.S. dollars, no matter what is their status. Many non-residents failed to file as they assume they do not own and this issue usually lies in overpayment. Keep in mind that the amount withheld from the average non-US resident paycheck is over the amount that would be due at the end of the year. Keep in mind that failing to file means you have suffered a huge loss of a refund.

Finding Out the Alien Tax Status

If you are not a U.S. citizen, then you are considered a nonresident alien if not meet one of two tests: 1) The green card test or 2) the substantial presence test for the calendar year (January 1 – December 31). In case you don’t meet any of the tests, then you are a nonresident alien. If you meet either test, then you are considered a U.S. resident alien and are taxed in the same way as U.S. citizens and your worldwide income is subject to us tax returns for non residents and you have to report that income on your U.S. tax return.

When and Where You Have To File

If you are a working person and receive wages/ salaries subject to U.S. income tax withholding, or have an office in the United States, then you have to file by the 15th day of the 4th month after your tax year ends. On the other hand, if you are an employee who receives non-employee compensation or wages subject to U.S. income tax withholding, or even if you do not have an office in the United States,  then file by the 15th day of the 6th month after your tax year ends.

Departing Non-Us Resident

Before leaving the US, all aliens must get a certificate of compliance, which is popularly known as the sailing permit or departure permit, and should be secured from the Internal revenue system before leaving the U.S. Apart from this, the alien will receive a sailing or departure permit after filing a Form 1040-C, Form 2063, U.S. Departing Alien Income Tax Statement or even U.S. Departing Alien Income Tax Return.

Although you have left the US and filed a Form 1040-C on departure, then you still need to file a yearly U.S. income tax return. In addition to this, you must file a separate tax return if you are married and both you and your spouse have to file unless one of the spouses is a resident alien or a U.S. citizen, in which case you could file a joint return with your spouse.

The US has income tax treaties with many overseas countries. For the non-resident person, these treaties can often reduce U.S. tax on different types of personal services and other income, including pensions, royalties, capital gains, and interest, dividends. So, you must review Tax Treaties to determine whether specific types of income are exempt from U.S. tax at a reduced rate