lsdz - Generally, a foreign national is taxed only on...

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C:16-2 Why is it important for a foreign national to ascertain whether he or she is a resident of the United States? If a foreign national is a resident of the United States, he or she is taxed on his or her worldwide income at progressive individual tax rates. If a foreign national is a resident of a country other than the U.S., different rules apply to passive investment income and trade or business income.
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Unformatted text preview: Generally, a foreign national is taxed only on income earned in the United States. Passive income is taxed at a flat 30% rate to a nonresident alien while trade or business income is taxed at progressive individual rates. Tax treaties may change the tax treatment and tax rate for nonresident aliens....
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