Nonresident Alien - General
This is archived information that pertains only to the 2002 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
I am a foreign national and came to this country on June 30th of last year. I have a H-1 visa. What is my tax status regarding resident, nonresident alien, or resident alien?
You were a dual status alien last year. As an H-1 visa holder in the U.S. for 183 days or more, you likely became a resident, for tax purposes, on June 30th. For the part of the year you are a resident alien, you are taxed on income from all sources.
For the part of the year that you are not a resident alien, you are taxed on income from sources outside the United States, unless the income is effectively connected with a trade or business in the United States.
Income from U.S. sources is taxable whether you receive it while a nonresident alien or a resident alien unless specifically exempt under the Internal Revenue Code or a tax treaty provision. Generally, tax treaty provisions apply only to the part of the year you were a nonresident and only if you are a resident of a country that has a treaty with the United States and you are resident for treaty purposes for the taxable year.
For that part of the year that you are a nonresident, file Form 1040NR (PDF), U.S. Nonresident Alien Income Tax Return. For that part of the year you are a resident, file Form 1040 (PDF) or Form 1040A (PDF).
References: I have an H-1 visa and my husband has an F-1 visa. We both lived in the United States all last year and had income. What kind of form should we file? Do we file our taxes separately or jointly?
You will have met the substantial presence test and will be taxed as a resident alien for the previous year. You may file a joint tax return if your husband makes the choice to be treated as a resident for the entire year. Generally, you cannot claim tax treaty benefits as a resident alien on Form 1040 (PDF), U.S. Individual Income Tax Return. Please refer to Publication 519 (PDF), U.S. Tax Guide for Aliens, for additional information.
References: I was an international student (F-1 visa) until October 1, then my visa status was changed to H-1. Should I file my income tax return as a dual status or nonresident alien?
Assuming you were not in the U.S. on your F-1 student visa for over 5 years, you may file as a nonresident for the entire year or, if you qualify under the first year choice, you may file as a dual status alien. Please refer to Publication 519 (PDF), U.S. Tax Guide for Aliens, for additional information.
References: I am a nonresident alien with no dependents. I am working with my H-1 visa. Do I file a Form 1040NR or 1040NR-EZ?
A nonresident alien must file Form 1040NR (PDF), U.S. Nonresident Alien Income Tax Return, or Form 1040NR-EZ (PDF), U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents, if you are engaged in a trade or business in the United States, or have any other U.S. source income on which the tax was not fully paid by the amount withheld.
You can use Form 1040NR-EZ instead of Form 1040NR if all nine of the following apply.
- You do not claim any dependents.
- You cannot be claimed as a dependent on another person's U.S. tax return (such as your parent's return).
- Your only U.S. source income was from wages, salaries, tips, taxable refunds of state and local income taxes, and scholarship or fellowship grants.
- Your taxable income (line 14 of Form 1040NR-EZ) is less than $50,000.
- The only adjustments to income you can claim are the student loan interest deduction or scholarship and fellowship grants excluded.
- You do not claim any tax credits.
- If you were married, you do not claim an exemption for your spouse.
- If you itemize deductions, the only deduction you claim is for state and local income taxes.
- The only taxes you owe are the tax from the tax tables, the social security and Medicare tax on tip income not reported to your employer, and the household employment taxes.
References: I live in a foreign country. How do I get a social security number for my nonresident alien dependent who qualifies for a social security card?
Use form SS-5-FS which may be obtained from the Social Security Administration (1-800-772-1213).
References: My spouse is a nonresident alien. How can I get a nonworking social security number for her?
Since 1997, each foreign person who does not have and cannot obtain a Social Security Number must use an IRS Individual Taxpayer Identification Number (ITIN) on any U.S. tax return or refund claim filed. This would include: - filing a U.S. tax return to report U.S.-source income;
- filing a U.S. tax return only to claim a refund of tax withheld;
- being the spouse of a U.S. citizen or resident who elects to file a joint tax return;
- being claimed as a spouse for an exemption on a U.S. tax return; or,
- being claimed as a dependent on another person's U.S. tax return.
Use IRS Form W-7 (PDF), Application for IRS Individual Taxpayer Identification Number, to apply for an ITIN by mail or in person at most IRS offices (see the list of offices abroad at the beginning of Publication 1915 (PDF), Understanding your IRS individual taxpayer identification number) in the U.S. and abroad, at certain U.S. consular offices and athttp://www.irs.gov. Complete Form W-7 at least 4 to 6 weeks before you need an ITIN. Sign and date the form and be sure to provide all information requested.
Provide original, or certified or notarized copies of identity documents (examples of acceptable documents include an original passport, national identity card, etc.). Original documents will be returned. See instructions for form W-7 for more detailed information.
NOTE: If you have an INS document showing you are allowed to work in the U.S., you are eligible for an SSN and should not file Form W-7.
If you choose the mailing option use the following address: Internal Revenue Service
Philadelphia Campus
ITIN Unit
P.O. Box 447
Bensalem, PA 19020 USA
If you have not heard from the IRS regarding your ITIN application within 30 days after you filed Form W-7, you may call either 1-215-516-ITIN (1-215-516-4846) (outside the United States) or toll free 1-800-tax-1040 (1-800-829-1040) (in the United States) to find out the status of your application. Be sure to have a copy of your Form W-7 application available when you call. Please allow 30 days from the date you filed Form W-7 before calling the IRS about the status of your application.
For additional information about ITINs, refer to Publication 1915 (PDF), Understanding Your IRS Individual Taxpayer Identification Number.
References: - Publication 1915 (PDF), Understanding Your IRS Individual Taxpayer Identification Number
- Publication 519 (PDF), U.S. Tax Guide for Aliens
- Form W-7 (PDF), Application for IRS Individual Taxpayer Identification Number
I am a nonresident alien and invested money in U. S. stock market through a U.S. brokerage company. Are the dividend and the capital gains taxable? If yes, how are they taxed?
Generally, capital gains received by a nonresident alien not present in the United States for 183 days or more are not taxable in the United States. Certain gains, however, are subject to the 30% withholding rate or if applicable, a reduced tax treaty rate on the gross amount of the following items:
- Gains on disposal of timber, coal, or domestic iron ore with a retained economic interest, unless an election is made to treat those gains as income effectively connected with a U.S. trade or business,
- Gains on contingent payments received from the sale or exchange after October 4, 1966, of patents, copyrights, secret processes and formulas, goodwill, trade marks, trade brands, franchises, and other sale property,
- Gains on certain transfers of all substantial rights to, or an undivided interest in, patents if the transfers were made before October 5, 1966, and
- Certain gains from the sale or exchange of original issue discount obligations issued after March 31, 1972.
Dividends are withheld upon at the 30% or lower tax treaty rate. If your withholding is not at the correct rate, a nonresident alien should file Form 1040NR (PDF), U.S. Nonresident Alien Income tax return to claim a refund of withheld taxes.
References:
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