Nonresident Alien

A nonresident alien is an individual who is not a citizen or resident of the United States for tax purposes. Nonresident aliens are taxed on their income from U.S. sources, such as wages, interest, dividends, and capital gains. They are also subject to the U.S. estate tax on their worldwide assets.

There are two types of nonresident aliens:

• Residents of treaty countries. Residents of treaty countries are taxed on their income from U.S. sources at the same rates as U.S. citizens. However, they may be eligible for certain tax benefits under the U.S.-treaty.
• Nonresidents of treaty countries. Nonresidents of treaty countries are taxed on their income from U.S. sources at a flat rate of 30%. However, they may be eligible for certain tax deductions and credits.

Nonresident aliens must file Form 8840, U.S. Withholding Tax Return for Nonresident Aliens and Foreign Entities, if they have any U.S. source income.

Here are some additional things to know about nonresident aliens:

• Nonresident aliens are not subject to the U.S. income tax on their foreign-source income.
• Nonresident aliens are not subject to the U.S. estate tax on their assets located outside of the United States.
• Nonresident aliens may be eligible for certain tax benefits, such as the foreign earned income exclusion and the foreign housing exclusion.

If you are a nonresident alien, it is important to understand your U.S. tax obligations. You should consult with a tax advisor to make sure you are filing your taxes correctly.