Oct 8 • General discussion
IRS REPORTING FOR FOREIGN NATIONALS
The IRS reporting requirements for foreign nationals are determined by their tax residency status, which is different from their immigration status. The two main categories are Resident Aliens and Non-Resident Aliens. Your tax obligations, including which forms you must file and what income you must report, depend on which category you fall into.
DETERMINING YOUR TAX STATUS: RESIDENT VS NON-RESIDENT ALIEN
You are considered a Resident Alien for tax purposes if you meet either the "Green Card Test" or the "Substantial Presence Test" for the calendar year. Otherwise, you are a Non-Resident Alien.
COMMON REPORTING REQUIREMENTS BY TAX STATUS
Resident Aliens
Resident aliens are generally treated the same as U.S. citizens for tax purposes.
Non-Resident Aliens
Non-resident aliens are taxed differently and have more limited reporting obligations.
Dual-Status Aliens
If your tax status changes during the year (for example, you were a non-resident alien and then became a resident alien), you are considered a "dual-status alien".
You will file a single return that reports your income for each period separately. This typically involves filing Form 1040-NR for the non-resident portion of the year and Form 1040 for the resident portion, or a combined "dual-status return" as instructed by the IRS.
OTHER KEY REPORTING REQUIREMENTS
Regardless of alien status, other common reporting requirements may apply.
Read our complete blog post here: https://siriustaxgroup.com/irs-reporting-requirements-for-foreign-nationals/
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IRS REPORTING FOR FOREIGN NATIONALS
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