Worked Temporarily In USA? Know About Taxes For Non-Residents
As it is acknowledged worldwide, the USA is one of the largest and strongest economies of all times which offers employment opportunities to millions. There are a lot of people who keep moving in and out of the United States for work. If you too have worked temporarily in the USA or if you are currently working in the States, you must know about the taxation for non residents in the country. In the formal language of the states, they use the term “non-resident aliens” for those who stay temporarily in the country without any green card or clearing the Substantial Presence Test(SPT). If you are a non-resident alien teacher, student or trainee in the States and you receive any scholarship, tips, wages or dividends then also you are subject to pay tax to the government. The following facts would help you understand about taxes for non-residents in the USA more precisely.
- The non-resident aliens are supposed to pay income tax to the IRS(Internal Revenue Service) for any form of money that they earn within the geographical boundaries of the United States. However, the IRS is not authorised to impose any tax on the income that the aliens earn in their home countries.
- A non-resident alien who is engaged in any business or trade earns any form of US income, any agent or representative of any company is also liable to pay income tax to the IRS. Just like Tax Consultants in Toronto, there are many agents and officers who work as tax consultants in the United States that can help and assist you in paying your taxes as well as in filing the tax returns.
- The incomes of non-residents are reported to the IRS under two distinct categories. Firstly, income that is directly connected with any trade or business in the US and secondly, US source income that is periodically fixed.
Income tax returns can also be filed by the alien tax-payers who can file a return using Form 1040-NR or Form 1040-NR-EZ depending upon the category of your income. There are several tax consultancies that can help you in filing the returns. These consultancies work as effectively as the Personal Tax Consultancy Service in Toronto and aim at helping non-residents in understanding the rules and regulations of the IRS.
As a responsible individual, if you have worked in the USA you must abide by their tax laws and do your bit of contribution as a non-resident alien.
