IRS Publication 513

DEFINITION of 'IRS Publication 513 '

A document published by the Internal Revenue Service that details tax requirements for workers earning an income in the United States who are non-resident aliens. Income earned in the United States is taxed regardless of citizenship status, although non-residents who do not earn income, such as tourists, or who do not conduct business do not have to file a return. If a worker in the United States earns income from abroad or has income exempt from U.S. taxes, that worker still has to file a return. Wages, rents, interest, dividends and income from business activities are subject to taxation.

BREAKING DOWN 'IRS Publication 513 '

Workers in the United States are considered non-resident aliens if they do not have a green card (not a lawful permanent resident) or if they do not pass the substantial presence test. However, non-resident aliens can seek to be treated as residents for a part of the year, meaning that someone can be both a non-resident alien and a resident during the same tax year. More information on this can be found in IRS Publication 519 (U.S. Tax Guide for Aliens).

RELATED TERMS
  1. Nonresident Alien

    A non-U.S. citizen who doesn't pass the green card test or the ...
  2. Resident Alien

    A foreigner who is a permanent resident of the country in which ...
  3. Dual-Status Taxpayer

    A taxpayer that has met the criteria to be both a resident and ...
  4. IRS Publication 54

    A document published by the Internal Revenue Service that outlines ...
  5. IRS Publication 524 - Credit For ...

    A document published by the Internal Revenue Service (IRS) providing ...
  6. Tax Exporting

    The raising of revenue for one jurisdiction through the levying ...
Related Articles
  1. Investing Basics

    Tax-Efficient Strategies For International Clients

    In a globalized world, international clients seek to diversify holdings by accessing U.S. markets. Creative strategies will help optimize tax positioning.
  2. Taxes

    How To File A Canadian Tax Return

    The process for filing a Canadian tax return is easy and streamlined. Here is the information you need to know before filing.
  3. Taxes

    3 Federal Income Tax Facts You Didn't Know

    Learn about three federal income tax facts that most Americans may not know from one of the most trusted financial resources on the Web.
  4. Savings

    Explaining Tax Returns

    A tax return is the form or forms used to file income taxes with the IRS.
  5. Taxes

    Understanding Income Tax

    Income tax is a levy many governments place on revenue of entities within their jurisdiction.
  6. Retirement

    What Taxes Do I Owe On Retirement Accounts Abroad?

    If you're a U.S. retiree, but previously worked abroad, here's what you need to know about taxes on foreign pensions and retirement accounts.
  7. Taxes

    5 Groups That Don't Pay Taxes

    Now that you've paid your share, find out who didn't have to pay taxes this year.
  8. Taxes

    Get A Tax Credit For Your Foreign Investments

    The foreign tax credit provides a break on investment income made and taxed in a foreign country.
  9. Taxes

    How American Expats Are Taxed

    Learn what tax forms American expats are required to file, what tax breaks and deductions are available, and what potential pitfalls to avoid.
  10. Retirement

    Top Tax Tips For Retirees

    Filing your taxes during retirement can be just as time consuming as when you were employed. We have some tips to help you out.
RELATED FAQS
  1. How do I file taxes for income from foreign sources?

    If you are a U.S. citizen or resident alien, your income (unless exempt), including what's earned outside the U.S., is usually ... Read Answer >>
  2. Who is exempt from paying Social Security taxes?

    Learn about the groups of people who qualify for exemption from Social Security taxes, and explore the process of applying ... Read Answer >>
  3. What is the difference between a state income tax and a federal income tax?

    Learn the difference between state income tax and federal income tax based on tax rates, deductions, tax credits and taxable ... Read Answer >>
  4. How do I find out what my tax bracket is?

    Learn the information you need to determine what your tax bracket is. Read Answer >>
  5. What is the difference between gross income and earned income?

    Being able to distinguish between earned income and gross income is an important tool in preparing for and filing your individual ... Read Answer >>
  6. What is the highest marginal tax rate in the United States?

    Find the highest marginal tax rate in the United States, calculate your taxable income, and maximize your returns by moving ... Read Answer >>
Hot Definitions
  1. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  2. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  3. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  4. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  5. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  6. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
Trading Center