Nonresident Tax Basics

Course Description

According to the IRS, thousands of non-resident aliens are gainfully employed every year in the United States. Since taxation is different for residents and non-residents, understanding the rules, treaties, and requirements is critical.

Principles

• The U.S. tax treatment of nonresident aliens differs significantly from that of U.S. residents, with distinct rules governing income, estate, and gift taxation
• Determining whether an individual is classified as a resident or nonresident for tax purposes is fundamental to identifying the applicable tax obligations and reporting requirements
• The Internal Revenue Code establishes specific statutory rules governing the taxation of nonresident aliens, including the treatment of U.S.-source income and estate and gift tax liability
• Income tax treaties between the United States and other countries may modify or reduce U.S. tax obligations for nonresident aliens, depending on the treaty provisions and the taxpayer’s circumstances

Syllabus

1. Recognize that taxation is different for U.S. residents versus non-residents
2. Recall the statutory rules for both income as well as estate and gift purposes
3. Identify how income tax treaties can impact the taxation of non-residents