Non-resident Alien Definition

Definition Of Non-resident Alien:

Anon-U. S.

citizenwho doesn't pass the green card test or the substantial presence test. If a non-citizen currently has a green card or has had a green card in the past calender year, he or shewould pass the green card test and would be classified as a resident alien. If the individual has resided in the U. for more than 31 daysin the current year and has resided in the U. for more than 183 days over a three-year period, including the current year,he or shewould pass the substantial presence test and also be classified as a resident alien.Resident aliens are taxed on all earned income as if they were U. citizens, but a non-resident alien is not taxed in the same way. For a non-resident alien, only income that is generated from U. sources, excluding certain investments such as stocks, is subject to taxation. For example, if you live in England and own acompanythat operates in the U., but you have not been to the U. for five years and don't have agreen card (a non-resident alien), theincome generated by the business will be subject to U. tax.Dividends are taxed at 30% for every non-resident alien, whilecapital gains are not subject to U. tax.

Definition Of Non-resident Alien:

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