Tax guide for non-resident citizens living in Texas
Taxes are an essential part of any society. Every individual pays them for the different services they obtain. Any income generated is also taxable according to government laws. This can be really confusing for anyone trying to do their own taxes.
Getting in touch with an International Tax Consultant in Texas is a great way of simplifying the whole process of filing tax returns.
The Accounting and Tax company is a leading online tax consultant and accounting firm for both individuals and companies. Clients with the firm’s help can file the different taxes at the right time and even enjoy tax benefits and returns.
Still, before availing these, clients must know about the differences existing in the tax system.
Every person living in Texas need not pay the same amount of tax. It depends on factors like if a person is a citizen, a resident alien, or a non-resident alien.
This article aims to specifically clarify the tax laws for the non-resident and resident aliens in the country and what income generated by them is liable for the tax.
Before talking about the tax system let us define the terms resident and non-resident. Like US citizens, the resident aliens have green cards from the government. This allows them to work for any American firm. This class has to be in the country for at least 183 days over a period of three years.
On the other hand, nonresident aliens do not even live in the state of Texas or even in the US. They just deal with US-based firms and industries which generate income for them.
What qualifies you as a Texas Resident?
An individual who is independent, 18 years of age or over, and who has lived in Texas for 12 consecutive months and has been gainfully employed within the state prior to enrollment in an institution of higher education is entitled to be classified as a resident of Texas.
Taxation laws for Nonresidents
The US government is pretty strict about keeping tabs on the money being invested in its businesses. The IRS can ask the non-resident aliens about the source of investment that was not generated via an income in the USA.
In case of such investments, the government taxes 30% of the invested amount unless specified by any prior agreements.
Though one thing is sure – the government does not charge any kind of taxes on income generated outside of the USA. It only deals with income tax on revenues via any American firm or service.
In case a non-resident becomes a permanent resident in the country they need to pay dual taxes. Once as a non-resident and the next time after obtaining their green cards and as residents. Therefore they must keep a detailed record of all their incomes to avoid any kind of pressure from the IRS.
When someone renounces their citizenship and becomes a non-resident ready to leave the country they must pay an expatriation tax on all their incomes and assets.
There are many more rules concerning the taxation policies of non-residents in the IRS Publication 519. Therefore to avoid all the hassle, clients need an international tax consultancy service like The Accounting and Tax company which is adept at filing all the tax returns.
