Resident alien taxes
As a legal U.S. resident, you’re subject to the same tax rules as U.S. citizens. This means that you must report all income you earn on annual tax returns, regardless of which country in which you earn it.
Non-resident taxes
A non-resident must also pay income taxes to the IRS but only on the income that’s effectively connected to the U.S., which generally includes the money you earn while in the U.S. The IRS, however, has no authority to impose tax on the income that non-residents earn in their home countries or in any foreign country for that matter.
When you prepare your U.S. tax return, you must use Form 1040NR or the shorter 1040NR-EZ, if eligible.
- Regardless of the form you use, you will only report amounts that are considered US-source income.
- Just like resident aliens and U.S. citizens, there are deductions and credits you can claim to reduce your taxable income.
All non-resident tax return forms like 1040NR, 1040NR-EZ or 8843, are available with instructions on the IRS website. You can also use software like Sprintax to guide you through the non-resident tax return preparation process.
From Help for Resident and Nonresident Aliens
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Wages paid to resident aliens employed within the United States by an American or foreign employer are subject to Social Security/Medicare taxes under the same rules that apply to U.S. citizens.
Wages paid to nonresident aliens employed within the United States by an American or foreign employer, in general, are subject to Social Security/Medicare taxes for services performed by them within the United States, with certain exceptions based on their nonimmigrant status.
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