Federal Tax Returns
A non-resident alien (someone who is neither a citizen nor a resident of the US) who invests in the US may be required to file a tax return with the US tax authorities. This can include someone that invests in real estate, whether there is income or loss from the property, and whether the person invests directly or in partner with other investors in an LLC.
The following three refundable credits are the most common refundable credits that may yield to negative tax:
Also, if a non-resident alien has passive income, such as interest, dividends, or capital gains, and the required tax was not withheld from his income, then he would be required to file a tax return to report and pay the difference.
He may also file a tax return to claim a refund if excess tax was withheld from his income.
States Tax Returns
The United States is composed of fifty states, each with its own laws and taxes. Each state has different requirements for filing tax returns with that state, in addition to the federal requirement. Some states require any non-resident with income in that state to file a tax return, while other states do not collect income tax at all. Some states require the investor to file a tax return only if he meets certain criteria.
For individual assistance, our tax expert will be happy to assist you.