U.S. Tax Preparation Worldwide   James Maertin CPA

 
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Tax Guide

IRS Tax Law Changes

Americans Abroad

Capital Gains, Interest and Dividends

Deductions

Dependents

Education Credits, Scholarships

Foreign Bank Reporting

Foreign Nationals

Social Security, Medicare, Self Employment Tax

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Tax Deadlines, Extensions, Late Payments, Estimated Tax

Tax Resident, Nonresident, Dual Status

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Foreign Nationals


To get started with your individual tax return preparation, please fill out a tax questionnaire.    

 

Tax compliance for foreign nationals is one of my areas of expertise and I have prepared thousands of tax returns that had foreign issues. The rules are quite complex but I will always look for the optimal way for you to file.

 

If you meet the substantial presence test, you are a resident alien for tax purposes and are required to file a U.S. resident income tax return (Form 1040). In this case your reporting requirements are the same as for U.S. citizens and green card holders: You are taxable on worldwide income, but foreign source income may be eligible for a foreign tax credit, and/or you may be able to claim foreign deductions (e.g., deducting foreign mortgage interest). You may also be subject to reporting foreign financial accounts and assets.

 

In some cases, a resident alien can be treated as a nonresident alien for tax purposes by claiming a closer connection to a foreign country.  Since U.S. residents are taxed on worldwide income, this is sometimes beneficial for those with a lot of foreign source income, provided you meet the requirements.

 

If you don't meet the substantial presence test, you are a nonresident alien for tax purposes and will file a nonresident income tax return (Form 1040NR).  Unlike tax residents, nonresidents only need to report U.S. source income and do not have to report foreign bank accounts. 

 

In some cases, a nonresident alien may be able to elect to be treated as a U.S. resident alien under the First Year Choice rule.  Taxpayers who benefit most from this election are generally married with a non-working spouse and also those with children.  That's because the tax rates are better for married filing jointly versus married filing separately (married filing separately is required when filing as a nonresident).  Also, as a resident alien, if you have children, you may be entitled to child tax credits which are not available to nonresident aliens, but only if your child has a social security number (as of 2018).  If you make this choice and you are married, you'll also have to make an election to treat your nonresident spouse as a tax resident

 

In the year of your arrival or departure in the U.S., you may be required to file a dual status tax return.  You are a dual status alien when you have been both a U.S. resident alien and a nonresident alien in the same tax year.   

 

Certain foreign nationals may also qualify for tax treaty benefits.  For example, if you were a student or trainee with earned income, there may be a tax treaty with your country that allows you to exempt a certain amount of earned income.

 

My Tax Guide lists many differences in the taxation of U.S. residents versus U.S. nonresidents.  When preparing your tax return, I always try to find the most benefits legally possible.

 

A foreign national may also need to apply for an ITIN (Indlvidual Taxpayer Identification Number) for a spouse and/or child who is not eligible for a social security number.  Every person listed on the tax return is required to have a SSN or ITIN. 

Foreign Students

 

See Tax Treaties for Foreign Students