(440) 843-8680

cpa@simiccpa.net

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America Top 10
Expertise Award

Top Rated CPA According to 'America Top 10' and 'Expertise'

(440) 843-8680

cpa@simiccpa.net

facebook-icon
America Top 10
Expertise Award

Top Rated CPA According to
'America Top 10' and 'Expertise'

Nonresident Alien and Foreign Earned Income filings

Nonresident Alien Tax Filings

If you’re new to the country and confused by the myriad tax laws, don’t worry, we’re here to help. Michael Simic, CPA, has guided countless nonresident aliens and new immigrants through the proper documentation and filing of annual income taxes, including any estimated taxes that may be due throughout the year.

Did you know that if your only income is from wages, salaries, tips, taxable refunds of state and local income taxes, scholarship or fellowship grants, that you may only need to file a 1040NR-EZ? But if you have income from dividends, mortgage interest, royalties, pensions, or social security benefits you have to file 1040NR and make sure to fill out all 5 pages. To make it even more complex, if you will owe taxes at the end of the year, you will have to prepay by making estimated taxes during the year. For more information, we have the following tax forms available for download:

So who needs to file?

1040NR – If you were a nonresident alien who conducted business or trade in the U.S., even if you didn’t have any income, you need to file. The exceptions are if you only provided personal services and your income was less than $3,950 for the year, or were a student, teacher or trainee with a “F,” “J,”“M,” or “Q” visa.

1040NR-EZ – If you need to file 1040NR, but you have no dependents, you are not yourself a dependent, and you had income less than $100,000, check into the full list of qualifications on the Instruction form and you may just be able to use this shorter, easier form.

Foreign Earned Income Tax and Exclusion

US citizens and resident aliens who live or work abroad, or who expect to receive income from foreign sources have a particular form they need to file, form 2555. There are several things you can exclude from your foreign income, however, such as your housing, or the foreign income taxes you pay on that income. If you are able to exclude all of your income, you may even be able to just file the 2555-EZ. For more information, we have the following 2014 tax forms available for download:

So who needs to file?

2555 – If you are a U. S. Citizen or U. S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty, your regular place of employment or business was a foreign country, and you were either a bona fide resident of that country or physically present for 330 days out of 12 consecutive months, and had income, you will need to file.

2555-EZ – If you need to file a 2555, you may be able to exclude your foreign earned income up to $99,200 based on certain qualifications listed on form 2555-EZ, including not being self employed or a business owner, and not taking the housing deduction, or moving expenses.

Application for IRS Individual Taxpayer Identification Number

For most people your taxpayer identification number is your Social Security Number, or SSN. But if you are a foreign person who does not have, or is not eligible, for a social security number, you must obtain an Individual Taxpayer Identification Number, or ITIN. This number is for federal tax purposes only, and must be included on all federal tax returns or statements, and furnished upon request to anyone who needs it for return or statement.

So who should file?

  • Nonresident aliens who are eligible for reduced withholding under a tax treaty
  • Nonresident aliens filing a U.S. tax return
  • A nonresident alien spouse of a U.S. citizen who is claimed as an exemption or are filing a joint tax return
  • A foreign person who is party to another foreign person’s disposition of U.S. real property

Along with the complete form W-7, you will need to submit identity documents. The identity documents must show both identity and foreign status; they must also include a recent photograph. Acceptable documents include a national identification card, a birth certificate, foreign driver’s license, visa, or passport. If a passport is used, no other documentation is needed. You will need to either provide the originals or certified copies of your documentation. For more information, we have the following tax forms available for download:

Still need help? Contact us today and we’ll make sure it’s done right.

Contact us

Located at 6485 Ridge Rd, Parma, OH 44129, our Parma location is open year round.
Whether you need taxes prepared, some one to do your payroll or an ally in venturing into the world of business ownership, we're here to help.

440-843-8680

440-885-8287

6485 Ridge Rd, Parma, OH 44129