Residents versus Nonresidents
“Resident aliens” (non-citizens considered resident in the U.S. for tax purposes) are generally subject to the same tax rules as a U.S. citizen and are required to fill out the same form as U.S. citizens (Form 1040).
In contrast, “nonresident aliens” (non-citizens considered not to be resident in the U.S. for tax purposes) are subject to U.S. taxation when they receive wages or business income while in the U.S., or who receive U.S. source income while outside the U.S.. Nonresident aliens (or "NRAs") are required to file a different tax return (Form 1040NR).
Dual Status Aliens
It is possible for an non-citizen to qualify as both a resident and nonresident in the same tax year. This may occur, for instance, if an individual becomes a citizen or resident in the United States in the middle of the year, or renounces citizenship in the middle of the year. A taxpayer with two statuses in the same tax year is known as a "dual status alien", a classification with a unique tax return filing known as a "dual status return".
A dual status return is comprised of a Form 1040 tax return with a Form 1040-NR attachment, or a Form 1040-NR tax return with a Form 1040 attachment, depending on whether the non-citizen has gained or lost status as a tax resident of the United States in the middle of the year. A dual status tax return requires careful consideration and analysis in order to properly allocate a dual status alien's activities and tax items to the Form 1040 and Form 1040-NR returns.
Non-Citizen Tax Filing - Special Cases
- Au pairs
- Summer camp workers
- Government personnel
Non-Citizen Tax Filing Service
Expat Tax Professionals can help determine your status for U.S. tax purposes. We can then prepare the appropriate forms based on your tax status, whether you require a Form 1040 filing, a Form 1040-NR filing, a dual status tax return, or a treaty position form to enjoy tax exempt status or other benefits available to you. Our in-depth knowledge of and experience with the U.S. tax code as well as U.S. income tax treaties serve as the backbone to our comprehensive approach.
Our in-house tax professionals are the core of our offer and of what makes us unique. We provide expert support from U.S. CPAs, EAs and tax attorneys at every step to tax compliance, providing the resources, knowledge and understanding to provide a tailored-service that meets your particular needs.