Publication 513
Tax Information for Visitors to the United States
(Revised: 12/2002)

Introduction

This publication is for visitors to the United States. If you have income from sources within the United States, you may have to file a U.S. income tax return even if you are only visiting this country. For purposes of this publication, a visitor to the United States is a nonresident alien. This publication summarizes the requirements of U.S. income tax law relating to nonresident aliens and is for nonresident aliens only.

You are a nonresident alien unless you are either a U.S. citizen or a resident of the United States. To be a resident of the United States, you must meet either the substantial presence test or the green card (Alien Registration Receipt Card) test.

Substantial presence test.   You meet the substantial presence test if you are physically present in the United States on at least:

1. 31 days during the current year, and
2. 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
   1. All the days you were present in the current year, and
   2. 1/3 of the days you were present in the first year before the current year, and
   3. 1/6 of the days you were present in the second year before the current year.

For more information about the substantial presence test, see Publication 519.

Green card test.   You generally are a resident of the United States if you have been issued an alien registration card, also known as a green card. You continue to be a resident under this test unless the status is taken away from you or is determined to have been abandoned. For more information about the green card test, see Publication 519.

Dual-status alien.   You can be both a nonresident alien and a resident of the United States during the same tax year. This usually occurs in the year you arrive in or depart from the United States. Aliens who have dual status should see chapter 6 of Publication 519 for information on filing a return for a dual-status tax year.

Under U.S. immigration law most visitors who come to the United States are not allowed to work here. You must check with the Immigration and Naturalization Service or its successor before getting a job.

Comments and suggestions.   We welcome your comments about this publication and your suggestions for future editions.

You can e-mail us while visiting our web site at www.irs.gov.

You can write to us at the following address:

Internal Revenue Service
Tax Forms and Publications
W:CAR:MP:FP
1111 Constitution Ave. NW
Washington, DC 20224

We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.

Useful Items

You may want to see:

Publication

• 519   U.S. Tax Guide for Aliens

Form

• W-4   Employee's Withholding Allowance Certificate
• W-7   Application for IRS Individual Taxpayer Identification Number
• 1040-C   U.S. Departing Alien Income Tax Return
• 1040NR   U.S. Nonresident Alien Income Tax Return
• 1040NR-EZ   U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents
• 1040-ES (NR)   U.S. Estimated Tax for Nonresident Alien Individuals
• 2063   U.S. Departing Alien Income Tax Statement
• 4868   Application for Automatic Extension of Time To File U.S. Individual Income Tax Return

Who Must File an
Income Tax Return

If you are a nonresident alien visiting the United States only for pleasure, receive no income from U.S. sources, and are not engaged or considered to be engaged in a trade or business in the United States, you do not have to file a U.S. income tax return.

Table 1 can help you determine whether you have U.S. source income.

Whether you are engaged in a trade or business in the United States depends on the nature of your activities. If you are in doubt whether or not you are engaged in a trade or business, see Trade or Business in the United States in Publication 519.

If, in 2002, you work in the United States, you must file a U.S. income tax return even if:

1. Your income did not come from a trade or business conducted in the United States,
2. You have no income from U.S. sources, or
3. Your income is exempt from U.S. income tax.

Considered to be engaged in a trade or business.   If you perform personal services (work) in the United States at any time during the tax year, you usually are considered engaged in a trade or business in the United States. For an exception to this rule, see Employees of foreign persons, organizations, or offices, next.

Employees of foreign persons, organizations, or offices.   If you are paid for working in the United States, that income (pay) is not considered to be from U.S. sources if all three of the following conditions are met.

1. The pay is for work you do as an employee of or under contract with:
   1. Any nonresident alien, foreign partnership, or foreign corporation that is not engaged in a trade or business in the United States, or
   2. Any U.S. citizen, resident, partnership, or corporation if you work for an office or place of business maintained by your employer in a foreign country or a possession of the United States.
2. You perform these services while you are a nonresident alien temporarily present in the United States for a period or periods of not more than a total of 90 days during the tax year.
3. Your pay for such services is not more than $3,000.

If all three conditions are not met, your pay for work done in the United States is generally U.S. source income.

Crew members.   Compensation for services you perform in connection with your temporary presence in the United States as a regular crew member of a foreign vessel engaged in transportation between the United States and a foreign country or U.S. possession is not U.S. source income and is exempt from U.S. tax.

Others who must file.   Even if you are not engaged in a trade or business in the United States, you must file a return if you have U.S. income and not enough income tax was withheld to pay the tax that is due.

You must file a return if you are claiming a refund of overwithheld or overpaid tax. Also, you must file a return if you want to claim the benefit of any deductions or credits. For example, if you do not have a job or trade or business in the United States, but you do have rental or royalty income from an interest in U.S. real property, you may choose to treat that activity as a U.S. trade or business. To claim a deduction for any allowable expenses related to that business, you must timely file a true and accurate return.

With certain exceptions, you must file a return when you take the position that a U.S. tax treaty overrules or modifies a U.S. tax law. You must provide special information with the return, including a statement of facts supporting your position. For details, see Reporting Treaty Benefits Claimed in chapter 9 of Publication 519.

Identification number.   You must furnish a taxpayer identification number on returns, statements, and other tax-related documents. You can get a taxpayer identification number by filing Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS.

What Income Is Taxed

A nonresident alien usually is subject to U.S. income tax only on U.S. source income. Under limited circumstances, certain foreign source income is subject to U.S. tax. See Foreign Income in chapter 4 of Publication 519.

Taxable income from U.S. sources includes, but is not limited to, the following.

1. Wages, salaries, commissions, fees, tips, etc., for services performed in the United States. For exceptions, see Employees of foreign persons, organizations, or offices, and Crew members, earlier.
2. Interest, with the following exceptions.
   1. Interest paid by certain resident aliens or domestic corporations if at least 80% of the payer's gross income for the 3 preceding years was from sources outside the United States.
   2. Interest on certain amounts paid by a foreign branch of a domestic corporation or a domestic partnership.
   3. Interest on deposits with a foreign branch of a domestic corporation or domestic partnership, but only if the branch is in the commercial banking business.
3. Dividends, with the following exceptions.
   1. Dividends received from a domestic corporation if the corporation elects to take the Puerto Rico economic activity credit or the possession tax credit.
   2. Part of the dividends received from certain foreign corporations.
4. Rents and royalties from property located in the United States or from any interest in such property.
5. Gains, profits, and income from the sale or exchange of inventory in the United States you purchased outside the United States and its possessions.
6. Gains, profits, and income from the sale or other disposition of a U.S. real property interest.

   A U.S. real property interest is any interest in real property (including natural deposits) located in the United States or the Virgin Islands or any interest (other than as a creditor) in certain domestic corporations holding U.S. real property interests.

For more information, see Publication 519.

What Tax Forms
You May Need

If you are a nonresident alien and you must file an income tax return, use Form 1040NR, U.S. Nonresident Alien Income Tax Return, unless you qualify to use Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents.

If you have income from which no (or not enough) U.S. tax is withheld, you also may need to file Form 1040-ES(NR), U.S. Estimated Tax for Nonresident Alien Individuals.

Before leaving the United States, you may have to file Form 1040-C, U.S. Departing Alien Income Tax Return or Form 2063, U.S. Departing Alien Income Tax Statement.

These forms are briefly discussed later. Be sure to get Publication 519, which is a complete tax guide for aliens.

Income Tax Withholding

If you are an employee, your employer will usually take income tax out of your wages and pay it to the U.S. Treasury in your name. This is called withholding. The rate of withholding depends on the amount of your income and the information you give your employer on Form W-4, Employee's Withholding Allowance Certificate. The amount withheld is credited against the tax you owe when you file your U.S. tax return.

Household employees.   If you work as a household employee, your employer does not have to withhold income tax. However, you may agree to voluntary income tax withholding by filing a Form W-4 with your employer. The agreement goes into effect when your employer accepts the agreement by beginning the withholding. You or your employer may end the agreement by letting the other know in writing.

30% flat rate.   If you do not work as an employee, any pay you receive for your services is subject to withholding at a 30% flat rate. Income tax must be withheld at a flat rate of 30% on the following types of income from U.S. sources unless they are connected with the conduct of a U.S. trade or business, or the rate has been lowered by tax law or income tax treaty.

• Interest (other than interest on bank deposits, savings and loan, credit union, or similar accounts, amounts held by insurance companies under agreements to pay interest, or certain portfolio debt obligations).
• Dividends.
• Rents.
• 85% of social security benefits paid to nonresident aliens.
• Annuities (payments from pensions, trusts, etc.).
• Royalties.

When and Where To File

If you are an employee and you receive wages subject to U.S. income tax withholding, you must generally file by the 15th day of the 4th month after your tax year ends. If you file for the 2002 calendar year, your return is due April 15, 2003. (If you have not previously established a tax year other than the calendar year, you must use the calendar year as your tax year.)

If you did not receive wages subject to U.S. income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. For the 2002 calendar year, file your return by June 16, 2003 because June 15, 2003 is a Sunday.

Form 1040NR-EZ or Form 1040NR must be sent to the following address.
 
      Internal Revenue Service Center
      Philadelphia, PA 19255

If you cannot file your return by the due date, file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, or use one of the electronic filing options explained in the Form 4868 instructions. This will extend the due date to August 15. You must file the extension by the regular due date of your return.

When to file for deductions and credits.   To get the benefit of any allowable deductions or credits, you must timely file a true and accurate return. For information on what is considered timely for this purpose, see chapter 7 in Publication 519.

Penalties.   The law imposes penalties for filing your tax return late or for late payment of any tax due. However, a penalty is not charged if you can show that there was reasonable cause for your filing or paying late.

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