Q. What is the difference between a resident alien and nonresident aliens for tax purposes?

A. Since resident aliens and nonresident aliens are taxed differently, it is important for you to determine your status. You are considered a nonresident alien for any period that you are neither a U.S. citizen nor a U.S. resident alien, unless you make a first-year choice to be treated as a resident alien. You are considered a resident alien if you met one of two tests for the calendar year. For specific information, refer to Tax Topic 851, Resident and Nonresident Aliens, or Publication 519, U.S. Tax Guide for Aliens. If the tax information you need relating to this topic is not addressed in Publication 519, you may call the IRS National Office hotline. The number is (202) 874- 1460. This is not a toll-free number.

Q. What is a dual-status alien?

A. You are a dual-status alien during any year in which you have been both a resident alien and a nonresident alien, such as the year you arrive in or depart from the United States. In figuring your tax, different rules apply to each part of the year. This is discussed in Tax Topic 851, Resident and Nonresident Aliens. For more information, refer to Tax Topic 852, Dual-Status Aliens, or Publication 519, U.S. Tax Guide for Aliens, which has an example of a dual-status tax return. If the information you need relating to this topic is not addressed in Publication 519, you may call the IRS National Office hotline. The number is (202) 874-1460. This is not a toll-free number.

Q. I am a U.S. citizen working abroad. Are my foreign earnings taxable?

A. If you are a United States citizen or a resident alien who lives and works abroad, you may qualify to exclude all or part of your foreign earnings from your income. For specific information, refer to Tax Topic 853, Foreign Earned Income Exclusion - General.

If you would like more information on who qualifies for the exclusion, refer to Tax Topic 854. For more information on what type of income qualifies for the exclusion, refer to Tax Topic 855. You may also wish to refer to Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad. If the information you need relating to this topic is not addressed in Publication 54, you may call the IRS National Office hotline. The number is (202) 874-1460. This is not a toll- free number.

Q. What is the foreign tax credit?

A. The foreign tax credit is intended to relieve U.S. taxpayers of the double tax burden when their foreign source income is taxed by both the United States and the foreign country from which the income is derived. For specific information, refer to Tax Topic 856, Foreign Tax Credit, or Publication 514, Foreign Tax Credit for Individuals. If the information you need relating to this topic is not addressed in Publication 514, you may call the IRS National Office hotline. The number is (202) 874-1460. This is not a toll-free number.

Foreign Issues - General

Q. Under my visa as a temporary non-resident alien, I'm not subject to social security and Medicare withholding. My employer withheld the taxes from my pay. What should I do to get a refund of my social security and Medicare?

A. If social security tax was withheld in error from pay received which was not subject to the tax, contact the employer who withheld the tax for reimbursement. If you are unable to get a refund from the employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement, and attach a copy of the Form W-2, Wage and Tax Statement, to prove the amount of social security tax withheld. For specific information on other required attachments, refer to Publication 519, U.S. Tax Guide for Aliens.

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