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Foreign Citizens Residing Outside the U.S. with Income Sourced in the U.S.

If you are a foreign citizen with US-sourced income (for example if you own a rental property in the US), you are required to file an annual Federal (and possibly State) tax return.

If you performed work for a U.S. employer who issued a W-2 in your name, you are also required to file U.S. federal and state returns - even if you had tax withholding throughout the year.

If you receive retirement distributions from a U.S. pension plan - you have to file a U.S. tax return to reconcile the amount of tax withheld with the amount that you owe and receive a refund.

If you have non-real estate investments in the U.S., such as an income-producing savings account, stocks, or bonds then in many occasions you can claim a refund for tax withheld by the withholding agent (bank or broker). You may be not required to file, but it is in your best interest to file it, otherwise you will not get back the excessive tax withheld. You may be able to recover the full amount of tax withheld if you live in a country that has a Tax Treaty with the U.S.

We will advise you on how to stop tax withholding in the future and avoid the need of recurring filing.

We help many foreign citizens handle their affairs with the IRS and are familiar with the issues you face.

Frequently Asked Questions

1. I’m a non-US citizen and not a GC holder. I do not live in the US, but I have rental properties in the US. Do I need to file a US tax return? What about State taxes?

2. I have no income from an employer and no self-employment income and my sole source of income is from a rental property I own in the US. Do I still have to file a return?

3. I have a rental home in state with no income tax. Do i need to declare this somehow?

4. I am not a US citizen or GC holder, but I have had a US brokerage account. I sold my stocks and my US broker withheld capital gains tax. Can I get this back and get a refund?

5. I had paid foreign tax of $3,235. Form 1116 shows $3,005 as "disallowed" and $230 was utilized. Could you please explain this?

6. I would like to start a business in the U.S. and need an EIN and ITIN - what is the process to get started?

Further Reading