Income Types

A prize or award paid to a nonresident alien can be subject to U.S. federal income tax, but the result does not come from the… Read More »Prizes and Awards for Nonresident Aliens

For a nonresident alien, a royalty payment is not automatically subject to U.S. tax simply because the payer is a U.S. company. The first issue… Read More »Royalties and Nonresident Alien Tax Basics

For a nonresident alien (NRA), a profit from selling an investment is not automatically subject to U.S. federal income tax simply because the asset is… Read More »Capital Gains for Nonresident Aliens

Rental income from real property located in the United States is generally U.S.-source income for federal tax purposes, even when the owner lives abroad, the… Read More »Rental Income for Nonresident Aliens

Interest income does not have one federal tax treatment for every nonresident alien. A payment may be U.S.-source interest and still be excluded from federal… Read More »Interest Income for Nonresident Aliens

Dividend income received by a nonresident alien is usually treated differently from wages, self-employment income, or scholarship income. For U.S. federal tax purposes, dividends from… Read More »Dividend Income for Nonresident Aliens

FDAP and ECI are two federal tax categories used for income received by nonresident aliens. FDAP generally refers to U.S.-source income that is fixed, determinable,… Read More »FDAP vs ECI for Nonresident Aliens

Effectively connected income, often shortened to ECI, is income that is connected with a trade or business in the United States. For a nonresident alien,… Read More »Effectively Connected Income Explained for Nonresidents

FDAP income means fixed, determinable, annual, or periodical income. For a nonresident alien, the term usually matters when U.S.-source income is not treated as effectively… Read More »FDAP Income Explained for Nonresident Aliens