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Important
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For information call now:
(347) 989-4566
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Additional information
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Internal Revenue Service
Austin Service Center
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342
IN
1-800-829-1040
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Employees of Foreign Persons, Organizations, or Offices.
Income for personal services performed in the United States as a nonresident
alien is not considered to be from U.S. sources and is tax exempt if you meet
all three of the following conditions.
1. You perform personal services as an employee of or under a
contract with a nonresident alien individual, foreign partnership, or foreign
corporation, not engaged in a trade or business in the United States; or you
work for an office or place of business maintained in a foreign country or
possession of the United States by a U.S. corporation, a U.S. partnership, or a
U.S. citizen or resident.
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 these services is not more than $3,000.
If your pay for these services is more than $3,000, the entire amount is income
from a trade or business within the United States. To find if your pay is more
than $3,000, do not include any amounts you get from your employer for advances
or reimbursements of business travel expenses, if you were required to and did
account to your employer for those expenses. If the advances or reimbursements
are more than your expenses, include the excess in your pay for these services.
A day means a calendar day during any part of which you are physically present
in the United States.
Example 1.
During 2010, Henry Smythe, a nonresident alien from a nontreaty country, worked
for an overseas office of a U.S. partnership. Henry, who uses the calendar year
as his tax year, was temporarily present in the United States for 60 days during
2010 performing personal services for the overseas office of the partnership.
That office paid him a total gross salary of $2,800 for those services. During
2010, he was not engaged in a trade or business in the United States. The salary
is not considered U.S. source income and is exempt from U.S. tax.
Example 2.
The facts are the same as in Example 1, except that Henry�s total gross salary
for the services performed in the United States during 2010 was $4,500. He
received $2,875 in 2010, and $1,625 in 2011. During 2010, he was engaged in a
trade or business in the United States because the compensation for his personal
services in the United States was more than $3,000. Henry�s salary is U.S.
source income
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