Non-Resident U.S. Tax

Non-Resident U.S. Tax: What Non-Residents Need to Know

What Does “Non-Resident” Mean for U.S. Tax Purposes?

In U.S. tax law, non-resident status has nothing to do with where you live emotionally or permanently — it’s a legal classification based on immigration status and physical presence. You are generally considered a non-resident alien for tax purposes if you:

This distinction matters because non-residents are taxed very differently than U.S. citizens and resident aliens.

How Non-Residents Are Taxed in the United States

Unlike U.S. citizens, non-residents are taxed only on U.S.-source income, not worldwide income. Common types of taxable U.S.-source income include:

U.S. employment wages

U.S. business income

Rental income from U.S. property

U.S. dividends, interest, and capital gains (in some cases)

Certain U.S. pension or retirement distributions

The tax treatment depends on the type of income, applicable tax treaties, and whether the income is considered:

Effectively Connected Income (ECI), or

Fixed, Determinable, Annual, or Periodical (FDAP) income

Do Non-Residents Have to File a U.S. Tax Return?

A non-resident must generally file a U.S. tax return if they:

Earned U.S.-source income during the year

Had taxes withheld and want to claim a refund

Are claiming treaty benefits

Conducted business in the U.S.

Most non-residents file Form 1040-NR, not the standard 1040 used by U.S. citizens.
Missing this filing — even unintentionally — can result in:

Lost refunds

Penalties

Future visa or immigration complications

Tax Treaties & Non-Resident Benefits

The U.S. has tax treaties with many countries that can:

However, treaty benefits are not automatic. They must be:

This is where many non-residents go wrong — and where professional guidance matters.

Common Non-Resident Tax Mistakes

Some of the most frequent errors we see include:

Non-resident taxation is technical, not intuitive.

How eTaxGlobal Helps Non-Residents Stay Compliant

At eTaxGlobal, we specialize in international and cross-border tax situations, including non-resident filings.

We help clients:

Whether you earned income once or every year, getting it right matters.

Need Help With Non-Resident U.S. Taxes?

If you’re unsure whether you need to file — or worried you may have filed incorrectly — we can help.

Get clarity before small issues become expensive ones.