{"id":175424,"date":"2020-08-27T15:53:00","date_gmt":"2020-08-27T19:53:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/trading-lessons\/us-taxes-for-us-non-residents-3\/"},"modified":"2023-04-25T21:05:41","modified_gmt":"2023-04-26T01:05:41","slug":"us-taxes-for-us-non-residents-3","status":"publish","type":"trading-lessons","link":"https:\/\/www.interactivebrokers.com\/campus\/trading-lessons\/us-taxes-for-us-non-residents-3\/","title":{"rendered":"US Taxes for US Non-Residents"},"content":{"rendered":"

It is, almost illogically, easier to define who is a non – US person backwards. The US has a unique taxation structure that taxes its citizens, Green Card holders and residents regardless of what country they live in. US taxes will apply to the first US Citizens to reside on the moon and they will need to file. A closer to home example is a US Citizen living in France. In addition to having French tax to file and pay, the US citizen would also have US taxes to file.<\/span><\/span>\u00a0<\/span><\/p>\n

Types of Residency<\/h4>\n

Non-US citizens, non- residents and people without green cards are non -US persons.<\/span> \u00a0<\/span>As stated before, if a person is a US citizen, they are always considered a US Person. Their<\/span>\u00a0<\/span>residency has no bearing.<\/span>\u00a0<\/span>Persons who are legal residents of the US have different status depending on what type of<\/span> \u00a0<\/span>residency they hold.<\/span>\u00a0<\/span>If a person is a holder of a US Green Card – they are, for US Tax purposes, treated as if they are a<\/span>\u00a0<\/span>US citizen. So, just like US citizens, they are subject to US tax regardless of residency.<\/span>\u00a0<\/span><\/p>\n

US residents here on work or other temporary visas are, with some exceptions, treated as US<\/span>\u00a0<\/span>persons subject to US tax. Once you leave the US the rules are complex requiring an averaging<\/span>\u00a0<\/span>of days in the US over a 3-year period. For the purposes of this program I will not deal with<\/span>leaving the US and assume that visa holders are US residents.<\/span>\u00a0<\/span><\/p>\n

A good reference in this area is IRS Publication 519.<\/span>\u00a0<\/span>Students and educators in the US on an F-1 visa are considered as continuing to reside in\u00a0<\/span>their<\/span>\u00a0<\/span>home country and are non – resident, despite their presence in the US.<\/span>\u00a0<\/span><\/p>\n

Employees of world organizations, such as the UN or World Bank and employees of other<\/span>\u00a0<\/span>governments, such as embassy workers are not considered resident in the US and are treated as<\/span>\u00a0<\/span>non-US persons.<\/span>\u00a0<\/span><\/p>\n

W-8BEN<\/h4>\n

Dealing only with individuals for the purpose of this program: Non-US persons must complete a form W-8BEN. This document identifies your tax status for the US.<\/span>\u00a0<\/span><\/p>\n

You must provide your:<\/span><\/p>\n