The Internal Revenue Service provides detailed information for nonresident aliens and is your best source for tax related questions.
International Tax
Anyone receiving payments from a U.S. source, whether they are U.S. residents or internationals are subject to U.S. taxation. There are specific regulations and processes required for determining the tax withholdings for international persons. In certain situations, there could be a tax treaty that may exist to exempt an international person from taxes or there may be regulations that allow a reduction in taxes.
Nonresident Alien for Tax Purposes
This is defined by U.S. tax regulations as an international person who has not been physically present in the United States for the amount of time required to be treated as a resident alien for Tax purposes. The status is determined based on the substantial presence test and the visa type of the individual. A nonresident alien for tax purposes has a completely different method of having tax withheld, completing tax forms and tax documents, and is eligible for very few and limited deductions and allowances when paying taxes. A nonresident alien for tax purposes must only report and pay tax on money that he or she receives from U.S. sources.
Resident Alien for Tax Purposes
This is defined by U.S. tax regulations as an international person who has been physically present in the United States for the amount of time required to be treated as a resident alien for tax purposes. The status is determined based on the substantial presence test and the visa type of the individual. Resident aliens for tax purposes are taxed in the same manner as a U.S. citizen. A resident alien for tax purposes must report ALL income from ALL sources, regardless of whether from the U.S. or foreign payors.
Nonresident Alien
This is defined by U.S. immigration laws and generally means any person who is not a U.S. citizen, U.S. national, U.S. resident, Asylee, Refugee or Permanent Resident.
U.S Resident
This is defined by U.S. immigration law and generally means any person who is a U.S. citizen, U.S. national, Asylee, Refugee or Permanent Resident.
For more information, please visit the Visa Office Website.