US Visa Holders

Taxation of Non-Immigrant Visa Holders

The United States has complicated non-immigrant visa procedures with tax consequences that vary significantly from one visa category to another. There are more than 20 non-immigrant visa categories with various requirements and restrictions focused on the type of employment, the purpose of visit, marital status, citizenship, residency,  occupation, and the like. At taxtake, we specialize in the provision of income tax return preparation and consultancy services to non-immigrants in the following broad categories

Students and Exchange Visitors on J, F, M, or Q Visa

Employees and Special Trainees on H-1, H-2, or H-3 Visas

Treaty Traders and Investors on E visa

Artists, Athletes and Extraordinary Ability Individuals on O and P visa

Intracompany Transferees on L Visa

Other Non-Immigrant Visa Holders

Non-Immigrants and Residency Considerations

A determination of the residency of a foreign citizen is a starting point for the preparation of any tax return. The Substantial Presence Test is the statutory tool used to determine the residency of a non-immigrant visa holder. Individuals who pass the Substantial Presence Test are considered US residents for federal tax purposes. Similar to US citizens, US residents are required to report and are subject to tax on their worldwide income. Individuals who do not pass the Substantial Presence Test in a given year, remain nonresidents for the entire year. Nonresidents are subject to federal tax only on income derived from sources within the USA.

The availability of a tax treaty is another important consideration. In addition to various income exclusions, tax credits, and limitations, the tax treaties also provide uniform residency determination rules. For instance, individuals with a closer connection to a foreign country may be treated as nonresidents of the USA, even if they otherwise meet the provisions of the Substantial Presence Test.

State and local income taxes are contingent upon the law in each state. Most states consider domicile and permanent home as critical factors for determination of residency. Consequently, most non-immigrants will be treated as nonresidents for state tax purposes, to the extent their permanent home remains outside of the state.

Income Tax Returns for Students and Exchange Visitors on J, F, M, or Q Visa

The US tax law stipulates that F-1, M-1 and J-1 visa holders in the "Student" category are exempt from the requirements of the Substantial Presence Test for the first five years of physical presence in the USA. Q and J-1 visa holders in all other categories, including Teachers, Trainees, Professors, Researchers, or Work and Travel participants are exempt for the first two years of presence in the USA.

The exemption grants students and exchange visitors a non-resident alien treatment for up to five years of presence in the USA. Nonresidents file a federal tax return on form 1040-NR or 1040NR-EZ and are subject to tax only on US source income. State and local taxes may also apply depending on the tax law in the particular state. Moreover, the income earned by J-1, F-1, M-1 and Q visa holders is exempt from Social Security and Medicare (FICA) taxes. We are masters in nonresident taxation, including

• Preparation and filing of all federal income tax returns, including Forms 1040-NR and 1040
• Preparation of Form 8843 "Statement for Exempt Individuals"
• State tax returns for all states and the D.C.
• Form W-7 and Individual Taxpayer Identification Number (ITIN) for foreign citizens who do not qualify for a Social Security Number (SSN)
• Tax treaty exemptions for students, teachers, and trainees
• FICA Tax refunds on Forms 843 "Claim for Refund" and 8316 "Request for Refund of Social Security Tax"
• Amended, prior-year, and corrected tax returns

Income Tax Returns for Temporary Workers and Special Trainees on H Visas

Federal statutes limit the number of temporary and skilled employment visas available to citizens of foreign countries. The requirements for special trainee visas are even more strengthened, as H-3 status is available only to individual seeking practical training in designated industries.

Most H visa holders are subject to federal income tax, Social Security & Medicare (FICA) taxes, and to state and local taxes that vary depending on the law in the particular state. The scope of taxation is contingent upon the tax residency of the individual. The taxtake experts specialize in

• Federal and State residency status determination based on your personal circumstances
• Preparation and filing of all federal income tax returns, including Forms 1040 and 1040-NR
• State tax returns for all states and the D.C.
• Tax advisory services, reviews, and determinations
• Amended tax returns, assistance with examination and appeals

Income Tax Returns for Treaty Traders and Investors on E-1 and E-2 Visas

Treaty Trader (E-1) and Treaty Investor (E-2) visas are available to citizens of more than 80 countries with which the United States has signed commerce and navigation treaties. These are special category non-immigrant visas that require individual holders to engage in a substantial US trade activity or develop a US company that meets certain investment requirements.

Most E visa holders are subject to federal income tax, Social Security & Medicare (FICA) taxes, and to state and local taxes that vary depending on the law in the particular state. The scope of taxation is further contingent upon the tax residency of the individual. Our CPAs are savvy at

• Federal and State residency status determinations and compliance
• Preparation and filing of all federal income tax returns, including Forms 1040 and 1040-NR
• State tax returns for all states and the D.C.
• Application and Interpretation of Double Taxation Avoidance Agreements
• Various tax advisory services
• Amended tax returns, assistance with examination and appeals

Income Tax Returns for Artists, Athletes and Extraordinary Ability Individuals on P and O Visas

Foreign artists and athletes who participate in an event, contest, or exhibition in the USA may qualify for a P visa status. O visas are issued to individuals with recognized achievements in arts, sports, business, education, or science. Most O and P visas are granted for a short-term stay in the USA, thus most O and P visa holders remain non-residents for federal tax purposes.

O and P visa holders are subject to federal income tax, Social Security & Medicare (FICA) taxes, and to state and local taxes that vary depending on the law in the particular state. However, the US tax treaties apply special treatment to income earned by artists and athletes. Full exemption from federal taxation is often available. Artists and athletes may also consider an advanced withholding agreement with the IRS to secure a reduced tax withholding rate. We specialize in

• Federal and State residency status determination based on your personal circumstances
• Preparation and filing of all federal income tax returns, including Forms 1040 and 1040-NR
• State tax returns for all states and the D.C.
• Form W-7 and Individual Taxpayer Identification Number (ITIN) for foreign artists and athletes who do not qualify for a Social Security Number (SSN)
• Application and interpretation of income tax treaties
• Tax advisory services, reviews, IRS determination letters, and central withholding agreements
• Amended tax returns, assistance with examination and appeals

Income Tax Returns for Intracompany Transferees on L Visa

Employees of a foreign branch, subsidiary, or parent of a US company may enter the US on L visa. The visa is granted to individuals transferred to the USA in a special occupation, managerial or executive capacity.

L visa holders are subject to federal income tax, Social Security & Medicare (FICA) taxes, and to state and local taxes that vary depending on the law in the particular state. The scope of taxation is contingent upon the tax residency of the individual. We provide services to both individual L visa holders and foreign employers transferring employees in the USA. More information is available in our Employee Mobility section. The taxtake professionals will assist you with

• Federal and State residency status determination based on your personal circumstances
• Preparation and filing of all federal income tax returns, including Forms 1040 and 1040-NR
• State tax returns for all states and the D.C.
• Form W-7 and Individual Taxpayer Identification Number (ITIN) for foreign citizens who do not qualify for a Social Security Number (SSN)
• Assistance with income tax treaties and social security agreements
• Tax advisory services, reviews, and determinations
• Amended tax returns, assistance with examination, appeals, and more

Non-Immigrant Visa Holders. Our Services.

Regardless of your US entry visa type, your tax residency status is essential for the preparation of accurate federal and state income tax returns. Individuals who meet the Substantial Presence Test are subject to tax on worldwide income, similar to US citizens. All other non-immigrant visa holders are subject to tax on income derived from sources within the USA. At taxtake, we understand the filing and reporting requirements that apply to non-immigrant visa holders, and we provide personalized income tax preparation services at affordable cost. Our services to non-immigrant visa holders include

• Federal and State residency status determination based on your personal circumstances
• Preparation and filing of all federal income tax returns, including Forms 1040 and 1040-NR
• Preparation of Form 8843 "Statement for Exempt Individuals"
• State tax returns for all states and the D.C.
• Form W-7 and Individual Taxpayer Identification Number (ITIN) for foreign citizens who do not qualify for a Social Security Number (SSN)
• Application and Interpretation of Double Taxation Avoidance Agreements
• Tax advisory services, reviews, and determinations
• Amended tax returns, assistance with examination and appeals

Should you wish to register for our tax services for non-immigrant visa holders, you may do so at any time. Did not find what you were looking for? Ask your questions and get a free quote with more information about how we can assist you further. You may also contact us directly.