As a US citizen, is your global income subject to US taxation ? Yes, if you are a US citizen or a resident alien, then you have to offer your global income on your US tax regardless of where you live. You are subject to the same income tax filing requirements that apply to US citizens or resident aliens who live in the United States.
In this article, we are going to see which categories of people are subject to the global income tax rules. All the definitions are explained in detail in the article below.
The definition says that you need to be a “US citizen” or a “resident alien”.
Let us know see who is a resident alien:
A resident alien is a person who is not a US citizen, but who meets either the Green Card test or the Substantial Presence Test.
1. Green Card Test – You are a U.S. resident if you were a lawful permanent resident of the United States at any time during the calendar year. Thus, if you hold a Green Card, you would qualify as a resident alien.
2. Substantial presence test. You are con-sidered a U.S. resident if you meet the substantial presence test for the calendar year. To meet this test, you must be physi-cally present in the United States on at least:
a. 31 days during the current calendar year, and
b. A total of 183 days during the current year and the 2 preceding years, counting all the days of physical pres-ence in the current year, but only 13the number of days of presence in the first preceding year, and only 16 the number of days in the second preced-ing year.
Thus, to sum up, if you are
a. A US citizen or
b. A green card holder or
c. You fulfil the substantial presence test
you will have to tax your global income on US tax return.
