Non-Resident

AAA

DEFINITION of 'Non-Resident'

An individual who mainly resides in one region or jurisdiction but has interests in another region. In the region where he or she does not mainly reside, he or she will be classified by government authorities as a non-resident. The classification itself will be determined in each region based on set circumstances such as the amount of time spent within the region during the calendar year. This classification is focused on where the person resides and does not focus on citizenship.

INVESTOPEDIA EXPLAINS 'Non-Resident'

For example, many individuals live in one state but have business in another region and derive income from sources within that region. If a non-resident generates taxable income within another region, he or she will have to file a separate tax return within the region compared to residents of that region. In other cases, a non-resident may have to pay more to go to college in a state where he or she does not primarily reside.

RELATED TERMS
  1. NR6 Form

    A Canada Revenue Service form that must be submitted by non-residents ...
  2. Alien

    Any person who is not a citizen of the country in which he or ...
  3. Resident Alien

    A foreigner who is a permanent resident of the country in which ...
  4. Domicile

    One's primary residence for tax purposes. A domicile is established ...
  5. Nonresident Alien

    A non-U.S. citizen who doesn't pass the green card test or the ...
  6. Withholding Tax

    1. Income tax withheld from employees' wages and paid directly ...
Related Articles
  1. Investing

    I am a non-U.S. citizen living outside the U.S. and trading stocks through a U.S. internet broker. Do ...

    The tax implications for a foreign investor will depend on whether that person is classified as a resident alien or a non-resident alien. To be considered a non-resident alien, a person must ...
  2. Retirement

    How do I file taxes for income from foreign sources?

    If you are a U.S. citizen or resident alien, your income (except for amounts exempt under federal law), including that which is earned outside the U.S., is usually subject to U.S. income tax.This ...
  3. Options & Futures

    As a temporary resident of the US, can I withdraw funds from my Traditional IRA without penalty when ...

    Should you decide to invest in a Traditional IRA and receive a tax deduction for your contribution, the amounts that you later withdraw will be subject to income tax and an additional ...
  4. Economics

    EU Probes Tax Laws To Catch Corporate Cheaters

    Recently, the EU has launched an investigation into tax deals between Amazon and the country of Luxembourg.
  5. Professionals

    How are an employee's fringe benefits taxed?

    Discover how receiving fringe benefits can increase total compensation for employees and how it is important to understand how these benefits are taxed.
  6. Taxes

    What is Value-Added Tax (VAT) and who pays it?

    Learn about the definition of value-added tax, the necessary circumstances that require a business to pay it and when a business is exempt.
  7. Economics

    The Economic Impact of Better US-Cuba Relations

    We examine what the normalization of relations between the US and Cuba will mean for the two countries' economies.
  8. Taxes

    If I reinvest my dividends, are they still taxable?

    Take a brief look at how the Internal Revenue Service taxes different kinds of dividends, including taxation on dividends that are reinvested.
  9. Taxes

    What types of revenue are taxable?

    Learn about all the various types of taxable corporate revenue and how different revenues are designated and differentiated from one another.
  10. Taxes

    How are trust fund earnings taxed?

    Trust fund earnings that are distributed are paid by the beneficiary. The trust pays taxes on retained earnings and principal increases.

You May Also Like

Hot Definitions
  1. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  2. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  3. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  4. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  5. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
  6. Bank Guarantee

    A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor ...
Trading Center