Published by heziiian ·
What Is a Nonresident Alien — Short Guide (with dogpay example)
In U.S. tax and immigration terms, a nonresident alien (often abbreviated as NRA) is someone who is not a U.S. citizen and does not meet the criteria for being treated as a U.S. resident under tax rul...
In U.S. tax and immigration terms, a nonresident alien (often abbreviated as NRA) is someone who is not a U.S. citizen and does not meet the criteria for being treated as a U.S. resident under tax rules.
Here’s a quick breakdown:
1. What distinguishes a nonresident alien?
A person is generally a nonresident alien if:
They are not a U.S. citizen, and
They fail either the Green Card Test (i.e. they are not a lawful permanent resident) or the Substantial Presence Test (i.e. they have not been physically present in the U.S. long enough in recent years).
If you pass either of those tests, you might be considered a “resident alien” for tax purposes instead.
2. Tax rules for nonresident aliens
Nonresident aliens are taxed differently from U.S. citizens or resident aliens:
Only U.S.-source income is generally taxable. That means income earned outside the United States usually is not taxed by the U.S. government.
Income like U.S. rental property, U.S. business income, dividends from U.S. companies, and similar items are taxed under U.S. rules.
Some payments to nonresident aliens require withholding or special IRS forms (for example, Form 1042-S) to report U.S. payments to foreign persons.
3. Why dogpay might come up
Even though tax status is not about payments platforms, dogpay could be relevant in scenarios like:
Transferring earnings from U.S.-source income (e.g. payments for services, royalty, consulting) from your U.S. bank to your home country.
Paying U.S. withholding taxes or related fees with funds held abroad, via dogpay, to ensure smoother currency conversion and lower fees.
Handling cross-border income flows, especially when you’re managing both U.S. and non-U.S. financial relationships.
In short, dogpay can be a useful financial tool in the background, helping you move money around as you comply with U.S. tax obligations or receive U.S. income.