- Tax Returns for Foreign Students and Scholars

U.S. Taxation for Aliens

US Residency Status

Depending on the residency status US taxes applied differently US alien taxpayers. There are three types of alien taxpayers:

Resident alien -A resident alien's income is generally subject to tax in the same manner as a U.S. citizen. If you are a resident alien, you must report all interest, dividends, wages, or other compensation for services, income from rental property or royalties, and other types of income on your U.S. tax return. You must report these amounts whether from sources within or outside the United States.

Nonresident Alien - A nonresident alien usually is subject to U.S. income tax only on U.S. source income. Under limited circumstances, certain foreign source income is subject to U.S. tax.

Dual-Status Alien - You are a dual status alien when you have been both a resident alien and a nonresident alien in the same tax year.

To determine you alien residency status using our comprehensive status determination dialog, click here

US Tax Withholding on Foreign Persons

Payments of income to foreign persons are subject to special withholding rules. For example, foreign athletes and entertainers are subject to substantial withholding on their source gross income. There are special rules apply to the taxation of Foreign Students and Scholars which do not apply to other kind of aliens.

Individual Taxpayer Identification Numbers (ITIN)

Anyone (including aliens) who files a U.S. federal tax return must have a Individual Taxpayer Identification Number (ITIN). In addition, aliens who request tax treaty exemptions or other exemptions from withholding must also have an ITIN.

To apply for ITIN using our software, click here.

Tax Treaties

The U.S. tax liability of aliens is determined primarily by the provisions of the U.S. Internal Revenue Code. However, the United States has entered into certain agreements known as tax treaties with several foreign countries which oftentimes override or modify the provisions of the Internal Revenue Code.

US Residency status

Tax withholding

Taxpayer ID number


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