To get started, please fill out a
tax questionnaire. After
completing the main tab, be sure to complete the Foreigner tab of the
questionnaire as well, if required, so I have the information necessary
to optimize your tax situation. This will also help me determine
whether you should file as a resident, nonresident, or dual status tax
return, or if you should file an election to be treated as a resident.
for information on federal and state residency, living expense
deductions, education, and many more topics.
This is one of our areas of specialization
which is not handled by many accountants. James has been prepared
thousands of tax returns for foreigners over the past 20 years. The
rules are quite complex but he will always look for the optimal way for
you to file. One major classification is that of resident versus
nonresident alien. If you qualify as a nonresident, you are taxed
only on U.S. source income while as a resident you are taxed on
worldwide income in the U.S. Also, nonresidents are exempt from
tax on U.S. bank and portfolio interest and if they are present in the
U.S. less than 183 days in a tax year are also exempt from most capital
If you can file as a federal nonresident,
generally you can also file as a state nonresident. This can
sometimes be quite
beneficial, as you are normally not taxed in the state on interest,
dividends and capital gains, or on earned income sourced outside the
state. Also, in New York, there is no New York City tax if you are
a New York State nonresident, even if you reside or work in the city.
If, however, you meet the substantial
presence test and are required to file a U.S. resident income tax
return, then your reporting requirements are the same as U.S. citizens
and green card holders: You must report worldwide income, and you
may also have to report foreign financial accounts and assets.
Foreign income can be offset by any foreign tax paid on the income, or
by claiming deductions related to foreign income or assets (e.g.,
deducting foreign mortgage interest and/or property tax).