Non resident Alien Vs Resident Alien
Jul 12th 2012, 7:11 am
#1
Just Joined
Thread Starter
Joined: Jul 2012
Location: Shanghai
Posts: 7
Non resident Alien Vs Resident Alien
Hello Everyone
I'm a British passport holder currently working for a US company base in Shanghai for the past 2 years. My family now have a good opportunity to relocate to our US office in Denver Co. But before we make this step I must be sure how much tax I need to pay as the difference between Non resident Alien Vs Resident Alien is so big.
My company will help me apply for L1B visa and my question is will I qualify to be a 'resident alien'?
Any help on this topic will be hugely appreciated.
Many thanks in advance.
Brds
Pooney
I'm a British passport holder currently working for a US company base in Shanghai for the past 2 years. My family now have a good opportunity to relocate to our US office in Denver Co. But before we make this step I must be sure how much tax I need to pay as the difference between Non resident Alien Vs Resident Alien is so big.
My company will help me apply for L1B visa and my question is will I qualify to be a 'resident alien'?
Any help on this topic will be hugely appreciated.
Many thanks in advance.
Brds
Pooney
Jul 12th 2012, 11:14 am
#2
Forum Regular
Joined: Sep 2002
Location: Los Angeles
Posts: 277
Re: Non resident Alien Vs Resident Alien
Yes, to the IRS you will be a 'resident' alien.
Hello Everyone
I'm a British passport holder currently working for a US company base in Shanghai for the past 2 years. My family now have a good opportunity to relocate to our US office in Denver Co. But before we make this step I must be sure how much tax I need to pay as the difference between Non resident Alien Vs Resident Alien is so big.
My company will help me apply for L1B visa and my question is will I qualify to be a 'resident alien'?
Any help on this topic will be hugely appreciated.
Many thanks in advance.
Brds
Pooney
I'm a British passport holder currently working for a US company base in Shanghai for the past 2 years. My family now have a good opportunity to relocate to our US office in Denver Co. But before we make this step I must be sure how much tax I need to pay as the difference between Non resident Alien Vs Resident Alien is so big.
My company will help me apply for L1B visa and my question is will I qualify to be a 'resident alien'?
Any help on this topic will be hugely appreciated.
Many thanks in advance.
Brds
Pooney
Jul 13th 2012, 12:41 am
#5
BE Enthusiast
Joined: Jun 2008
Posts: 450
Re: Non resident Alien Vs Resident Alien
Here's where the IRS explains it http://www.irs.gov/taxtopics/tc851.html
You are resident alien if you have a greencard or "substantial presence" in the US.
You are resident alien if you have a greencard or "substantial presence" in the US.
To meet the substantial presence test, you must have been physically present in the United States on at least 31 days during the current year, and 183 days during the 3 year period that includes the current year and the 2 years immediately before. To satisfy the 183 days requirement, count all of the days you were present in the current year, and one-third of the days you were present in the first year before the current year, and one-sixth of the days you were present in the second year before the current year.
There's a lot more detail than that bit, so read the IRS page.
Jul 13th 2012, 12:47 am
#6
Lost in BE Cyberspace
Joined: Jun 2008
Location: San Francisco Bay Area
Posts: 10,678
Re: Non resident Alien Vs Resident Alien
Here's where the IRS explains it http://www.irs.gov/taxtopics/tc851.html
You are resident alien if you have a greencard or "substantial presence" in the US.
You are resident alien if you have a greencard or "substantial presence" in the US.
To meet the substantial presence test, you must have been physically present in the United States on at least 31 days during the current year, and 183 days during the 3 year period that includes the current year and the 2 years immediately before. To satisfy the 183 days requirement, count all of the days you were present in the current year, and one-third of the days you were present in the first year before the current year, and one-sixth of the days you were present in the second year before the current year.
There's a lot more detail than that bit, so read the IRS page.
Jul 13th 2012, 4:04 pm
#8
Grumpy Know-it-all
Joined: Jul 2010
Location: Calgary, Alberta
Posts: 8,928
Re: Non resident Alien Vs Resident Alien
It is possible under various tax treaties to remain non-resident for tax purposes if you want to, but there isn't really any benefit if you're staying for a lengthy period of time. There are rare situations where it can make sense but usually those situations only apply to cross border commuters.
Your first tax return will be dual-status, which basically means a pro-rated return for the portion of the year you were in the US, read IRS Publication 519. As far as I'm aware there is no software that can do a dual-status return. Also if you leave the US on L-1B, your last return will also be dual-status unless you leave on December 31st.
Jul 16th 2012, 4:24 am
#9
BE Forum Addict
Joined: Apr 2011
Location: Ohio
Posts: 1,834
Re: Non resident Alien Vs Resident Alien
This depends when you arrive. If you don't meet Substantial Presence (as outlined in the 519 publication), then you can instead be taxed as a non-resident for your first year. We arrived late in 2011, and our tax preparers ran the numbers 3 ways - dual, non-res or fully res for the whole of 2011 - and we chose which gave us the best number (non-res, in our case).
Jul 16th 2012, 10:52 am
#10
BE Forum Addict
Joined: Aug 2004
Posts: 4,754
Re: Non resident Alien Vs Resident Alien
Hello Everyone
I'm a British passport holder currently working for a US company base in Shanghai for the past 2 years. My family now have a good opportunity to relocate to our US office in Denver Co. But before we make this step I must be sure how much tax I need to pay as the difference between Non resident Alien Vs Resident Alien is so big.
My company will help me apply for L1B visa and my question is will I qualify to be a 'resident alien'?
Any help on this topic will be hugely appreciated.
Many thanks in advance.
Brds
Pooney
I'm a British passport holder currently working for a US company base in Shanghai for the past 2 years. My family now have a good opportunity to relocate to our US office in Denver Co. But before we make this step I must be sure how much tax I need to pay as the difference between Non resident Alien Vs Resident Alien is so big.
My company will help me apply for L1B visa and my question is will I qualify to be a 'resident alien'?
Any help on this topic will be hugely appreciated.
Many thanks in advance.
Brds
Pooney
