Why is it important for a foreign national to ascertain whether he or she is a r

Question

Why is it important for a foreign national to ascertain whether he or she is a resident of the United? States?

A. It is important because if a foreign national is a resident of the United? States, the taxpayer is taxed on their worldwide income at progressive individual tax rates. If a foreign national is a resident of a country other than the United? States, different rules apply such? as, the taxpayer is taxed on any income in the country of their? residence, no exceptions.

B.

It is important because if a foreign national is a resident of the United? States, passive income is taxed at a flat? 30% rate while trade or business income is taxed at progressive individual rates. If a foreign national is a nonresident of the United? States, different rules apply such? as, the taxpayer is taxed on their worldwide income at progressive individual tax rates.

C. It is important because if a foreign national is a resident of the United? States, the taxpayer is taxed on their worldwide income at progressive individual tax rates. If a foreign national is a resident of a country other than the United? States, different rules apply such? as, passive income is taxed at a flat? 30% rate to a nonresident alien while trade or business income is taxed at progressive individual rates.? Generally, such an individual is taxed only on income earned in the United States.

D. It is important because if a foreign national is a resident of the United? States, passive income is taxed at a flat? 30% rate while trade or business income is taxed at progressive individual rates. If a foreign national is a nonresident of the United? States, different rules apply such? as, the taxpayer is taxed on any income in the country of their? residence, no exceptions.

Explanation / Answer

Option C

It is important because if a foreign national is a resident of the United? States, the taxpayer is taxed on their worldwide income at progressive individual tax rates. If a foreign national is a resident of a country other than the United? States, different rules apply such? as, passive income is taxed at a flat? 30% rate to a nonresident alien while trade or business income is taxed at progressive individual rates.? Generally, such an individual is taxed only on income earned in the United States.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.