It depends. nonresident aliens may be able to deduct a school property tax credit (reimbursement for rent payments) in Wisconsin but other things on your tax return will determine this.
The general rule for nonresident aliens is that for rental property, you are taxed at a flat 30% (or lower treaty) rate on your gross income from U.S. sources that are “not effectively connected” with your U.S. trade or business. As non resident aliens, you will file form 1040-NR.
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.
Here is a TurboTax article about tax tips for non resident aliens.
