tax deductions for non-residents?

Question

I am a non-resident who worked in the USA for three consecutive years for 4 months. After filing for a tax return after my last year (2006) I found out that my tax preparer has filed for $0 taxable income ($6100 gross income) and therefore I got 100% of the taxes paid as a refund. I know that non-residents are not entitled to all of the tax exemptions and deductions as US citizens and residents are and were very surprised. I thought that my tax preparer could be incorrectly filed for me as a resident, until I found out that:

The Green Card Test - You are considered a U.S. resident for tax purposes beginning on the day you are issued an alien registration card by the Immigration and Naturalization Service (INS). Use Form 1040: U.S. Individual Income Tax Return to prepare and file your taxes.

The Substantial Presence Test - You are considered a U.S. resident for tax purposes if you were physically present in the U.S. for at least:

31 days of the current year, and
183 days of the three-year period that includes the current year and the two years immediately preceding, including:
- all of the days you were present in the current year (2006)

- 1/3 of the days you were present in the first preceding year (2005)

- 1/6 of the days you were present in the second preceding year (2004)


Does this mean that every non-resident, who has stayed for more than 31 days in the USA during any calendar year, could be considered as a resident for tax purposes and therefore could take advantage of all exemptions and deductions, which residents and citizens are entitled to?
Are non-residents generally entitled to itemized standard deductions and personal exemption deductions?

Answer 1

Not exactly. Not just for 31 days each year. Step through the requirements step by step and you'll see how it works out. But if you meet the substantial presence test you will pay less tax.

Answer 2

No, the earnings and expenditures related to the apartment belongings could be pronounced on your U.S. individual earnings tax return in keeping with annum by way of fact the valuables is placed in the U.S. that's actual whether there's a internet apartment loss. in case you reside in yet another usa, you will additionally could record the earnings and fee on the tax return for that usa, your resident usa. If the apartment earnings exceeds the apartment expenditures, you've earnings tax to pay in the U.S., yet you are able to nicely be waiting to take a foreign places tax credit on the return to your resident usa. Having earnings in greater effective than one usa might nicely be an extremely complicated tax undertaking. For the year which you progression, the tax returns for the two international locations could be arranged a CPA(in the U.S.) or a Chartered accountant(in Canada). it could be particularly useful to %. a company close to the border and make confident that they might do the two returns and clarify them to you. After the 1st year, you are able to nicely be waiting to prepare them by ability of your self in case you already know what replaced into finished in the year of the circulate.