Search

I am a nonresident alien. Can I take the foreign earned income exclusion if I meet the bona fide resident test or physical presence test? If yes, what is the tax form used for nonresident taxpayer?

No, nonresident aliens do not qualify for the foreign earned income exclusion. Only if you are a U.S. citizen or a resident alien of the United States and live abroad, may you qualify to exclude a specific amount of your foreign earned income. Refer to Chapter 4 of Publication 54, Tax Guides for U.S. Citizens and Resident Aliens Abroad, for limitation that apply. If you are the nonresident alien spouse of a U.S. citizen or resident alien, you can elect to be treated as a U.S. resident in order to file a joint return. In this case, you can take the foreign earned income exclusion if otherwise qualified. Refer to Publication 519, U.S. Tax Guide for Aliens, for detailed instructions on how to make this election.

However, nonresident aliens would be able to exclude their foreign earned income under the dual-status rules. Refer to Tax Topic 852 for dual-status information. A nonresident alien is generally not subject to U.S. tax on compensation for services performed outside the U.S.

References:

  • Publication 519, U.S. Tax Guide for Aliens
  • Tax Topic 853, Foreign Earned Income Exclusion - General

    Source: www.irs.gov



  • Related Answers



    More Resources

    Advertisement
    Copyright © E-PersonalFinance.com. All rights reserved.
    No part of the content or the data or information included herein may be reproduced, replicated or redistributed without the prior written permission of E-PersonalFinance.com.
    Use of this site is governed by our Terms of Use Agreement and Privacy Policy.