Nonresidents

• Under U.S. Immigration law, a nonresident is a nonimmigrant visa holder who is in the country for fewer than 183 days per year. Normally, nonresidents do not have to file or pay income taxes, even if they perform legal work. Foreign students frequently fall into this category -- working part-time jobs while attending college or university. However, most nonimmigrants who work do not meet the test for nonresident.
  
  

Resident Nonimmigrants

• Many kinds of nonimmigrant visas allow people to work. H1-B visas, for example, are three-year nonimmigrant work visas that allow American companies to bring in skilled professionals such as nurses, engineers, computer programmers and physical therapists. Students on F-, J- and M-class visas are also nonimmigrants who can obtain work authorization and remain in the country for more than 183 days per year. All nonimmigrant workers staying more than 183 days per year must file taxes using the 1040NR form. Taxable income calculations are the same for nonimmigrants as they are for residents and citizens.
  
  

Taxable Income

• Generally, all of a nonimmigrant's income earned in the United States is taxable. However, foreign workers can claim deductions and exemptions like everyone else. Therefore, costs like health and dental insurance, prescription medicines, tuition, school supplies and books, and business travel expenses may be considered deductions that reduce their tax burden. Those with dependents such as children or elderly parents can usually receive deductions and tax credits.
  
  

Foreign Earned Income

• Nonimmigrants sustaining themselves off income from their home countries do not usually owe American taxes, though they usually have to file income tax returns if they reside in the United States more than 183 days per year. For example, a full-time college student from Japan who receives financial support from her parents does not owe taxes on her income. Similarly, a man from Ecuador spending the year with a dying family family member in America is unlikely to owe taxes if he is supporting himself with funds drawn from Ecuador.