Non citizens Categorized for Federal Income Tax Purposes
How are non citizens categorized for federal income tax purposes?
Under the Internal Revenue Code (IRC), a non citizen is categorized as either a Resident aliens or Non- Resident aliens, which determines the person’s tax treatment.
In general, a non citizen is a non-resident alien unless he or she meets the qualifications under either residency test:
Green card test: The individual is a lawful permanent resident (LPR) of the United States at any time during the year.
Substantial presence test: The individual is present in the United States for at least 31 days during the current year and at least 183 days during the current and previous two years (counting all the qualifying days in the current year, 1/3 of the days in the immediate preceding year, and 1/6 of the days in the earliest year).1
Resident aliens are generally subject to the same federal income tax laws as U.S. citizens. Feel free to reach us for any Tax consulting service. Our Tax Experts are happy to help you.