What is a Non Resident Alien?

Question

Does a Non resident Alien has to file tax ?

Answer 1

A non-resident alien is a non-US citizen who does not live in the US. If a non-resident alien has income subject to US taxation, he or she must pay the taxes due.

Whether or not they have to file a tax return depends upon the type of income. If an NRA was in the US for a short period of time and earned some income here in the US they would have to file a Form 1040-NR tax return on the income and pay any tax due. A good example of that type of person would be a foreign actor or musician performing in the US.

On the other hand, if an NRA has a US based bank or investment account and has earnings on that account they don't have to file a tax return because that type of income is subject to taxation at the source. The paying agent (bank or investment broker) withholds the taxes from the earnings and pays them directly to the IRS. These are generally taxed at a 30% rate, considerably higher than the rate that most US taxpayers would pay.

The examples above are very generic in nature. The US has tax treaties with many countries that may alter how much tax an NRA must pay, either up or down. Needless to say, US taxpayers living in foreign countries may be subject to those treaties as well.

Answer 2

Someone who does not have a green card but has earned income in the USA. A foreign music star or athlete is an example. That or someone who owns property in the US but is a citizen and resident of another country.

Answer 3

I am british, used to live in US a while, have some assets still there but now abroad. I have to pay tax on those assets to Uncle Sam and I am classed as an alien living outside the US but liable for US Tax, NRA for short (not rflement...)