Tax Tips For Non U.S. Residents and Foreigners

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Tax Tips For Non U.S. Residents and Foreigners
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• Whether youre a non U.S. resident or a foreigner
  living in America, you still need to pay your
  taxes irrespective of your alien status.
• The IRS has two tests that it uses to determine
  your alien status, and theyre called the 'green
  card' test, and the 'substantial presence' test.
  If you meet the requirements of either test,
  youll be registered as a resident alien for
  income taxes, but if you meet the requirements of
  neither, then youll be classed as a non-resident
  alien read on for tips and answers to any
  questions that you might have, about tackling
  your taxes as an alien or foreigner

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• If Im classed as an alien with a green card,
  what does it mean?
• This means that the U.S Citizenship and
  Immigration service have deemed you permissible
  to legally reside in the country, and you are a
  resident alien. However, if you dont have a
  green card and you go on to spend at least 31
  days in the U.S. during the current tax year, and
  have spent 183 days in total in the U.S. during
  the last 3 tax years, then this usually means
  that youll also be treated as a resident alien,
  and should satisfy the 'physical presence' test.

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• How to properly count 183 days
• When totting up the amount of days that youve
  been present in the U.S. during the period of 3
  years, you must not include every day. Rather,
  you should only count some of the days over a
  period of 2 of the 3 years. Also, you should not
  count days when you have been in the U.S. for the
  following purposes
• Regular commuting from a residence in Canada or
  Mexico
• In the U.S. for less than 24 hours when in
  transit between two places outside of the U.S.

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• When you are a crew member of a foreign vessel
• A medical condition that arose when you were in
  the U.S. prevented you from leaving
• There are one or two other exceptions when
  calculating the total amount of days spent in the
  U.S. over a period of 3 years, but to ensure that
  you get it right when filing your taxes, its
  best to consult the opinion and expert guidance
  of a tax professional.

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• What tax rules am I subject to if Im a resident
  alien?
• If youre classed as a U.S. resident who is
  residing in the country legally, then youll be
  required to adhere to the same tax rules as any
  other U.S. citizen. So, you need to report all
  income that you earn on annual tax returns, even
  if you earned it in another country.
• Must you pay income taxes as a non-resident?
• As a non-resident you must still pay income
  taxes, but it is usually only on earnings
  generated while you were in the U.S.

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• The IRS have no authority to impose taxes on any
  income that you might have earned as a
  non-resident when in your home country, though,
  or while in any foreign country.
• You must use either form 1040NR or form
  1040NR-EZ, depending on your eligibility.
  Remember that there will deductions and credits
  that you may be able to claim on your taxable
  income, just as if you were a resident alien or
  U.S citizen.

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• What is a dual-status taxpayer?
• Between the transitional year that you are a
  non-resident and a resident for tax purposes, you
  will usually be classed as a dual status
  taxpayer, and you will need to file 2 tax returns
  for the year. To avoid having to file twice, you
  may be able to be treated as a full-year resident
  in that transitional period.
• Taxes can be mind boggling, and rules and
  regulations can quickly change, too. Whether
  youre a non-U.S. resident or a foreigner living
  in the U.S. you really should engage the services
  of a tax professional to help you get the most
  from your deductions and exemptions, and to avoid
  making overpayments.

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• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax preparation service
  Coral Gables. If you are looking for tax
  preparation service in Miami, Heyer Associates
  would be a right option.