The IRS reporting requirements for foreign nationals are determined by their tax residency status, which is different from their immigration status. The two main categories are Resident Aliens and Non-Resident Aliens. Your tax obligations, including which forms you must file and what income you must report, depend on which category you fall into. 

DETERMINING YOUR TAX STATUS: RESIDENT VS. NON-RESIDENT ALIEN 
You are considered a Resident Alien for tax purposes if you meet either the “Green Card Test” or the “Substantial Presence Test” for the calendar year. Otherwise, you are a Non-Resident Alien. 

• Green Card Test: You are a Resident Alien if you are a lawful permanent resident of the United States at any time during the calendar year. 
• Substantial Presence Test: You are a Resident Alien if you were physically present in the U.S. on at least: 
• 31 days during the current year, and 
• 183 days during the three-year period that includes the current year and the two preceding years.
• To calculate the 183 days, you count all the days in the current year, 1/3 of the days in the first preceding year, and 1/6 of the days in the second preceding year.
  
  

COMMON REPORTING REQUIREMENTS BY TAX STATUS 
Resident Aliens 
Resident aliens are generally treated the same as U.S. citizens for tax purposes. 

• Income Reporting: You must report your worldwide income from all sources, both within and outside the United States. This includes wages, interest, dividends, and other types of income earned anywhere in the world. 
• Tax Form: You will typically file Form 1040 (or Form 1040-SR for seniors).
• Deductions and Credits: You have access to the same deductions and credits as U.S. citizens. 
• Due Date: The tax return is generally due on April 15th for calendar-year filers. 
  

Non-Resident Aliens 
Non-resident aliens are taxed differently and have more limited reporting obligations. 

• Income Reporting: You are generally only taxed on U.S.-source income and income that is “effectively connected” with a U.S. trade or business. U.S.-source income can include wages for services performed in the U.S., interest, and dividends from U.S. payers. 
• Tax Form: You must file Form 1040-NR, U.S. Nonresident Alien Income Tax Return. 
• Deductions and Credits: You cannot claim the standard deduction and have limited access to itemized deductions and credits. 
• Withholding: U.S. employers are required to withhold federal income tax from a non-resident alien’s wages. A non-resident alien may need to provide specific forms (like Form W-8BEN or Form 8233) to their employer to claim a tax treaty benefit that exempts their income from withholding. 
• Due Date: The due date for filing Form 1040-NR is generally April 15th if you received wages subject to U.S. income tax withholding. If you did not, the due date is generally June 15th. 
  

Dual-Status Aliens 
If your tax status changes during the year (for example, you were a non-resident alien and then became a resident alien), you are considered a “dual-status alien”. You will file a single return that reports your income for each period separately. This typically involves filing Form 1040-NR for the non-resident portion of the year and Form 1040 for the resident portion, or a combined “dual-status return” as instructed by the IRS. 

OTHER KEY REPORTING REQUIREMENTS 
Regardless of your alien status, other common reporting requirements may apply: 

• Taxpayer Identification Number (TIN): All individuals who file a U.S. tax return must have a TIN, which can be a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). If you are not eligible for an SSN, you must apply for an ITIN using Form W-7. 
• Foreign Bank Account Reporting (FBAR): U.S. citizens and resident aliens with an interest in or signature authority over foreign financial accounts must report these accounts if the aggregate value exceeds $10,000 at any time during the calendar year. This is done by filing FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), with the U.S. Treasury Department. Non-resident aliens are generally not subject to this requirement. 
• Foreign Financial Assets: Resident aliens may also be required to file Form 8938, “Statement of Specified Foreign Financial Assets,” with their tax return if the total value of their specified foreign financial assets exceeds certain thresholds. 
• “Sailing Permit” (Departing Alien): Foreign nationals leaving the U.S. may be required to get a “sailing permit” or “departure permit” by filing Form 1040-C or Form 2063 with the IRS before they leave. This is to ensure they have met their U.S. tax obligations. For more information, please feel free to contact us.
  
  If you have questions about your tax situation, residency status for tax purposes, or other reporting requirements, please feel free to contact us today.
  
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