As a boutique international tax firm, we’re finding international tax issues arising for individuals and companies of all sizes. Many of them never thought they’d have any cross-border activities. As many of our clients are CPA and law firm across the US, we thought it might be helpful to do a series of discussions on International Tax for the Non-Specialist. They are overviews designed to assist practitioners and taxpayers identify issues. The overviews dive into some level of detail, but we envision separate sessions to more fully explain various technicalities.

This discussion is #4 in the series following:
#1 on tax residency and foreign financial account disclosures [FBAR / FinCen 114 / Form 8938];
#2 on earning foreign income and an employee being transferred to a foreign affiliate;
#3 on the anti-deferral rules of Subpart F and identifying a controlled foreign corporation).

The primary focus on this presentation is an overview of how the US taxes the income of Nonresidents. This includes, but is not limited to:

1. Taxation differences between Residents and Nonresidents.
2. How to identify whether an individual is a Resident versus Nonresident.
3. Identifying types of Nonresident income the US may tax.
4. Different filing status (e.g., Married Filing Jointly).
5. Tax calculation (e.g., gross versus net; what deductions are Nonresidents able to claim).
6. Overview of Resident taxation and how a non-US citizen may become a US tax resident.
7. FDAP versus Effectively Connected Income.
8. When there is withholding on gross income versus a return filed on net income.
9. Compliance factors.
10. Issues related to whether there is a US trade or business.
11. As relevant, state tax issues are embedded throughout.

 

Course key Concept: International tax, Individual income tax, Resident Alien, Substantial presence test, Nonresident Alien Green Card, US trade or business, Effectively connected income, W-8BEN, Information returns, FinCEN 114 / FBAR, 8938, 5471 8865, 8858, 3520, 8621, 926, FDAP.

Course Series

This course is included in the following series:

7 CoursesPractical International Tax for the Non-Specialist

  1. Practical International Tax for the Non-Specialist #1: Tax Residency and Foreign Financial Account Disclosures
  2. Practical International Tax for the Non-Specialist #2: Case Study - US Person Earning Foreign Income and then Transferred to Foreign Subsidiary.
  3. Practical International Tax for the Non-Specialist #3: Anti-deferral overview - Subpart F and CFCs.
  4. Practical International Tax for the Non-Specialist #4: US Taxation of Nonresident Individuals
  5. Practical International Tax for the Non-Specialist #5: Section 956, Investment of Earnings in US Property
  6. Practical International Tax for the Non-Specialist #6: Check The Box Overview (Entity Classification Election)
  7. Practical International Tax for the Non-Specialist #7: Foreign Investment in US Real Property - FIRPTA
Learning Objectives
  • Explore the residency rules.
  • Identify how the US may impose income tax on Nonresidents.
  • Discover the various ways a Nonresident may file a US tax return.
  • Recognize the compliance requirements of Nonresidents and how they differ from Residents’ requirements.
Last updated/reviewed: August 14, 2023
10 Reviews (46 ratings)

Reviews

4
Member's Profile
As a UK accountant new to US tax, but with some engagement with US advisors in specific areas, the course helped by providing an overview that brought together different aspects in a structured whole. The slides were good to annotate and keep as notes, but please consider re-ordering them so they follow the same sequence as the videos to reduce confusion.

5
Anonymous Author
Wasn't very familiar with international tax returns, so I am finding the series to be a good introduction. Would like to see a course or series that covers international tax in more detail. Interesting that a non-resident alien still has some situations where they need to file.

4
Member's Profile
A little confusing, it would have been nice to have a section on the responsibilities of a US company paying non resident aliens, but maybe that is a different course.

5
Anonymous Author
Good course of information related to the requirements of nonresidents. Great place to serve as a jumping point to dive into more information.

5
Anonymous Author
A great overview of the implication of Non-Resident - alien- in the US taxation. Concise and to the point.

5
Anonymous Author
good course

5
Member's Profile
Marc's course on taxation of nonresident individuals was well prepared

4
Anonymous Author
There was good information given and it was easy to understand.

5
Member's Profile
accessible helpful to the point, easy to read and understand

5
Member's Profile
Easy to understand. Material flowed well. Good presentation!

Prerequisites
Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course. However it is recommended to take other Tax courses by Marc Schwartz: Practical International Tax for the Non-Specialist

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Practical International Tax for the Non-Specialist #4: US Taxation of Nonresident Individuals3:58
  US Taxation of Nonresident Individuals - Part 110:30
  US Taxation of Nonresident Individuals - Part 212:30
  US Taxation of Nonresident Individuals - Part 312:07
CONTINUOUS PLAY
  Practical International Tax for the Non-Specialist #4: US Taxation of Nonresident Individuals39:05
SUPPORTING MATERIAL
  Slides: Practical International Tax for the Non-Specialist #4: US Taxation of Nonresident IndividualsPDF
  Practical International Tax for the Non-Specialist #4: US Taxation of Nonresident Individuals Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam