Glossary
Nonresident Alien (NRA)
Definition
For U.S. tax purposes, a nonresident alien is an individual who is not a U.S. citizen and is neither a green card holder nor a resident under the Substantial Presence Test. Nonresident aliens are generally taxed only on certain U.S.-source income.
Tax status is not immigration status
The tax definition is different from the immigration one. A person on a visa can be a tax resident, and a person without a green card can still fail to be a nonresident if they spend enough days in the United States.
What is taxed
A nonresident alien is generally taxed on income effectively connected with a U.S. trade or business, and on certain U.S.-source passive income, often through withholding. Worldwide income is generally not subject to U.S. tax for nonresidents.
Filing
Nonresidents who must file generally use Form 1040-NR. Some also need other forms, for example when they own a U.S. entity. The status can change from year to year, including a dual-status year when the person moves in or out.
Practical example
For example, suppose Luis lives in Mexico and owns a U.S. rental apartment, spending only a few weeks a year in the United States. He would likely be a nonresident alien and generally taxed only on his U.S.-source income.
General information, not tax advice
This page provides general educational information about U.S. federal tax rules. It is not individualized tax, legal or accounting advice, and it does not create a client relationship. Results depend on each taxpayer's specific facts.
Written by Roger I. Chirino, founder of Chirino USA Accountants & Advisors P.A.
Supported by licensed CPAs, IRS Enrolled Agents (EAs), and experienced U.S. tax professionals focused on cross-border compliance and planning.
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