![]() ![]() You cannot claim a closer connection to a foreign country if you have tried to personally apply (or taken other steps) to change your permanent residency status or have a pending application for adjustments to your status during the current year. For example, if you looked to apply for a greencard, this would disqualify you. To establish a closer connection, a US taxpayer must have maintained more significant contacts with a foreign country other than the US. Regarding the closer connection exception, your tax home must be in existence for the entire current year and be located within the same foreign country you are claiming to have a closer connection. However, if you do not have a principal place of business or employment due to the nature of your job, your tax home is where you regularly or permanently live. For those who may work as digital nomads or do not fit into either category above, your tax home is wherever you work most of the year. It only considers where you, as a taxpayer, permanently work as an employee (or as a self-employed individual). It does not consider where you maintain your home. What is a Tax Home?Ī tax home is generally considered to be the place or country of your prominent place of business or employment. Usually, this means you only need to report your US-based income on form 1040-NR instead of Form 1040 you are also not required to report your global assets or accounts. If you meet the above requirements for a closer connection, you qualify to be treated as a nonresident alien for US tax purposes.
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