US or Non-US Source Income

Nonresident aliens, for tax purposes, unlike U.S. citizens and residents, are only subject to tax on income that is considered U.S. Source Income by the IRS. Foreign Source Income received by nonresident aliens is not subject to U.S. taxation. (Source, IRS Publication 515)

  • U.S. Source Income  Income is considered U.S. Source if the services for which the income is paid are performed in the U.S.
  • Foreign Source Income  Income is considered foreign source if the services for which the income is paid are performed outside the U.S. Scholarships, fellowships, and grants are sourced according to the residence of the payer. Those made by entities created or domiciled in the United States are generally treated as income from sources within the United States. Those made by entities created or domiciled in a foreign country are treated as income from foreign sources.
  • Scholarship or Fellowship  If a nonresident alien receives a grant that is not from U.S. sources, it is not subject to U.S. tax. Scholarship or Fellowship Grants that cover tuition,fees and books are not subject to U.S. tax. Scholarship or Fellowship Grants that cover room, board and other personal expenses ARE subject to U.S. tax unless a treaty benefit exists (Source, IRS Publication 4011). To see a complete list of countries with treaty benefits for Scholarship or Fellowship Grant, see the IRS Publication 515, Tax Treaty Tables.
  • Type of Income:
    Source Determined By:
  • Pay for personal services
    Where services are performed
  • Dividends
    Type of corporation (U.S. or foreign)
  • Interests
    Residence of payer
  • Rents
    Where property is located
  • Royalties-Patents, Copyrights, etc.
    Where property is used
  • Royalties-Natural resources
    Where property is located
  • Pensions due to personal services performed
    Where services were performed while a nonresident alien
  • Scholarships and fellowship grants
    Generally, residence of payer

Contact International Services

If you have questions or require additional information, email: internationaltax@kennesaw.edu.

©
Assistive Options

Top of page


Assistive Options

Open the original version of this page.

Usablenet Assistive is a Usablenet product. Usablenet Assistive Main Page.