What are resident aliens in the US and what taxes do they need to pay?
The U.S. is acclaimed as one of the biggest and strongest economies of all times which offers a lot of employment opportunities to people worldwide. There are people who either permanently settle in the States or reside there for a temporary period of time. In the official language of the country, these people who are foreign residents are called “resident aliens” and those who do not reside there but keep moving in and out of it are called “non-resident aliens”. The resident aliens are the ones who have qualified either the green card test or the Substantial Presence Test (SPT) for a calendar year (1st January to 31st December). If you are a resident alien in the U.S., you should know about the taxation system there.
What Taxes Do Resident Aliens Have To Pay?
A resident alien is liable to pay taxes in the same way as the US citizens. That is, you have to declare all your income worldwide to the Internal Revenue Service (IRS). As per the norms of the country, your worldwide income is subject to U.S. tax and must be declared and reported officially in your tax returns. If you are a new resident alien you can take the help of advisors like the professional tax consultants from firms such as The Accounting and Tax Company who can help you in understanding the taxation process in a better way. For instance, you can easily get an International Tax Consultant in New Orleans if you are living or have business there.
The taxes that you may have to pay while you reside in the country include Income tax, Property tax, Capital Gains tax, Payroll taxes, Sales and Excise taxes, Licenses and Occupational taxes, Estate and gift taxes, and customs duties. All these taxes are charged at federal, state, and local government levels depending upon the predefined tax divisions.
Just like the U.S citizens, you can also claim personal exemptions or exemptions for dependents while filing for a tax return. However, you can only claim exemption for dependents if the authorized dependent has a Social Security Number(SSN) or Individual Taxpayer Identification Number (ITIN). You can approach International Tax Consultants in the U.S for a better understanding of these exemptions and deductions.
If you want to simplify your tax payment process, you should consult The Accounting and Tax Company who offer services to individuals and businesses and extend their help in paying taxes efficiently. The professionals in the company can help you in filing your tax return in a way that you can save money as much as possible.
As a resident alien, you must know your rights as well as your duties towards the country so as to afford a better living.
