Sunday, September 7, 2014

Too Many Days in the US? They Know Everything !

Are you a US “Resident”?
Under US tax laws, any non-US citizen with a “substantial presence” in the United States runs the risk of being classified as a US “resident” for income tax purposes.  Those who are physically present in the United States for a long enough time may find themselves owing taxes on their worldwide income to the IRS even if they are neither a US citizen nor a green card holder, and even if they earn no income from US sources.  
You may have heard that spending less than 183 days a year in the US is “safe”. This is simply not true. You can learn more on this important topic in my blog posting here.  Remember, when counting days of physical presence, the day of arrival and the day of departure each count as one full day (e.g., you arrive in the US at 5 minutes to midnight; that is counted as a full day for purposes of the “substantial presence” test).


Tracking Your Every Step
Did you know that the U.S. Department of Homeland Security is tracking your entrance to and exit from the USA? What better way for the IRS to determine if you should be treated as a US “resident” for income tax purposes? 
The arrival and departure date records of non immigrant aliens entering and departing the United States are maintained in the U.S. Customs and Border Protection’s Non immigrant Information System, available on the I-94 website. You can access these records quite easily (and so can the IRS).  If you are a nonresident alien, NRA, for US income tax purposes, you should carefully monitor your days of physical presence in the US. You can now view the dates that you have entered and exited the US on the U.S. Customs and Border Protection I-94 website. Simply enter your name, date of birth, and passport details:    Travel records are available for the past 5 years.
FAQ’s about the I-94 here  
Demo here

 http://blogs.angloinfo.com/us-tax/2014/09/08/too-many-days-in-the-us-they-know-everything/

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.