What’s the Difference Between a Resident and Non-Resident Alien?
Contributed by: James Moore.
U.S. citizens are subject to U.S. income tax on their income from all sources, domestic or foreign. If they have foreign source income taxed by the source country, they can seek relief from double taxation by way of the foreign tax credit, if allowed, under U.S. law or from an applicable bilateral tax treaty with the source country.