Publication 519 |
2000 Tax Year |
Income Subject to Tax
For the part of the year you are a resident alien, you are taxed on
income from all sources. Income from sources outside the United States
is taxable if you receive it while you are a resident alien. The
income is taxable even if you earned it while you were a nonresident
alien or if you became a nonresident alien after receiving it and
before the end of the year.
For the part of the year you are a nonresident alien, you are taxed
on income from U.S. sources and on certain foreign source income
treated as effectively connected with a U.S. trade or business. (The
rules for treating foreign source income as effectively connected are
discussed in chapter 4
under Foreign Income.)
Income from sources outside the United States that is not
effectively connected with a trade or business in the United States is
not taxable if you receive it while you are a nonresident alien. The
income is not taxable even if you earned it while you were a resident
alien or if you became a resident alien or a U.S. citizen after
receiving it and before the end of the year.
Income from U.S. sources is taxable whether you receive it while a
nonresident alien or a resident alien unless specifically exempt under
the Internal Revenue Code or a tax treaty provision. Generally, tax
treaty provisions apply only to the part of the year you were a
nonresident.
When determining what income is taxed in the United States, you
must consider exemptions under U.S. tax law as well as the reduced tax
rates and exemptions provided by tax treaties between the United
States and certain foreign countries. For a further discussion of tax
treaties, see chapter 9.
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