Can non-resident aliens use TurboTax?

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Can non-resident alien use TurboTax.fw

Yes! Non-resident aliens earning money or doing business in the U.S. have to file U.S. tax returns. The appropriate form is 1040NR or 1040NR-EZ. TurboTax, as well as other tax preparation software like H&R Block at Home, does not support those forms. A non-resident alien can either use services of a tax professional or fill out the form by him/her-self using the IRS guidance and instructions.

Before filing Form 1040NR or 1040NR-EZ one has to make sure that he/she is still considered a non-resident alien. The IRS uses a green card test or substantial presence test to determine that. Having a green card immediately classifies a person as a resident alien. Substantial presence test means that if you spend at least 31 days in the U.S. in the current tax year and a total of 183 days in the past three tax years, including the current tax year, you are considered a resident for tax purposes.

Non-resident aliens are only taxed on earnings generated in the U.S. Foreign sources of income are exempt from taxes. Resident aliens are treated as U.S. citizens for tax purposes and have to report all income generated, regardless of country where the money was earned. Additionally, resident aliens switch to Form 1040 or 1040A or 1040EZ if applicable.

 

  1. August 15, 2013

    Tom

    Example: 6% tax free interest is the same as what % taxed interest if you are in the 28% federal tax bracket?

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