International Tax — Resident and Nonresident Alien Taxation
You may be subject to U.S. taxes if you are a citizen of a country other than the United States and you reside within the borders of the United States or have earned income from effectively connected sources within the United States. This means that you may be required to file a U.S. tax return. The taxation for resident aliens is dramatically different from taxation for nonresident aliens.
A resident alien is generally taxed on income from all sources, including sources outside of the United States. The tax rates applied to resident aliens’ taxable income are the same as for U.S. citizens.
A nonresident alien is taxed on all income effectively connected with the conduct of a trade or business within the United States. The United States does not tax foreign-sourced income, gains or losses unless a U.S. office or fixed place of business is maintained at anytime during the year. The tax rates are less favorable to nonresident aliens, and some income is taxed at a flat 30% rate.
Individual taxpayers often need professional tax return preparation and sometimes, representation before the Internal Revenue Service regarding a previously filed tax return. Albin and Associates is here to help.
Residing abroad? If you’re a U.S. taxpayer residing overseas, you are still required to file and pay U.S. taxes on all of your worldwide income. If you are searching for a professional to review personal financial decisions with you to help identify alternatives and weigh the tax consequence of each choice, contact us at Albin and Associates.
Business taxpayers can require bookkeeping services and/or compiled financial statement preparation, or assistance in preparing quarterly employers payroll tax reports. Albin and Associates can help with these and the computation of the payroll tax liability. Is your business faced with a difficult decision that will have a material impact on its profitability? We can help sort through the quagmire and bring focus to the important aspects of the decision. Our professional analysis of the problem will make the decision an easier one after the important components are identified and examined. Consult with us; you won’t have to make these decisions alone.