Filing non-resident tax returns is more complex compared to resident returns, even when the reported income is minimal:
Different treatment of Effectively Connected Income: Income connected with a trade or business in the United States must be treated differently than other income.
Different treatment of Fixed, Determinable, Annual, and Periodical Income: These income types must be treated differently than Incidental Income which includes earnings or gains that arise from services performed for another or in self-employment, occasional freelance work, sporadic sales of personal items, or isolated transactions that are not part of the taxpayer's usual business operations, etc.
Assessment of preferential tax rate eligibility: We must ascertain whether your income qualifies for favorable tax rates according to a tax treaty.
For instance, reporting $10,000 of U.S. income using Form 1040NR might lead to tax dues ranging from $0 to $3,000, depending on the income characteristics listed above.
The additional fee associated with filing a non-resident return goes towards an analysis of these income characteristics. This scrutiny ensures that non-resident aliens are taxed with precision, aiming to minimize penalties. Our meticulous approach strives to achieve accurate taxation for non-residents, reflecting their unique financial circumstances.
For detailed pricing information, please refer to our non-flat fees list.