A non-resident alien is someone who isn’t a U.S. citizen or national and doesn’t meet the criteria to be considered a resident alien. They typically have stronger ties to another country and are in the U.S. temporarily for work, study, or travel.
Non-resident aliens don’t meet either the green card test or the substantial presence test, which determine whether someone qualifies as a U.S. tax resident. Because of that, they follow different tax rules than U.S. citizens and resident aliens.
Resident alien vs non-resident alien
The main difference lies in how each is taxed and what forms they file.
Category | Resident Alien | Non-Resident Alien |
Residency Criteria | Meets the green card test or substantial presence test (generally 183 days or more in the U.S. over three years). | Does not meet either test and maintains closer ties to another country. |
Taxation | Pays taxes on worldwide income, similar to U.S. citizens. | Pays taxes only on U.S.-sourced income. |
Tax Forms | Files Form 1040 (same as citizens). | Files Form 1040-NR and may face specific withholding rules. |
Tax Deductions & Credits | Eligible for standard deductions and most credits. | Limited deductions and credits, often depending on treaty benefits. |
Tax rules for non-resident aliens
Non-resident aliens pay taxes only on income earned within the U.S. They file Form 1040-NR and are usually subject to a flat 30% tax rate on passive income such as interest, dividends, rents, or royalties, unless reduced by a tax treaty.
They can’t claim the standard deduction and have limited access to tax credits. Because their withholding and filing requirements differ from residents, it’s important to stay compliant to avoid penalties.
Work documentation for non-resident aliens
Non-resident aliens working in the U.S. must have a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) for tax reporting. They also need to:
Complete Form W-4 for withholding
Provide valid work authorization (such as an Employment Authorization Document or visa)
Submit Form W-8BEN to confirm foreign status when required
Do non-resident aliens get Social Security numbers?
Only those authorized to work can apply for an SSN. Non-resident aliens who aren’t eligible for one must instead apply for an ITIN, which is used for tax purposes only. An SSN allows employment in the U.S., while an ITIN helps individuals meet their tax obligations without granting work authorization.
Why hire a non-resident alien?
Hiring non-resident aliens can offer several advantages for employers:
Access to global talent beyond the U.S. labor market
Fills skill gaps in industries with shortages
Adds cultural and language diversity to teams
Brings international perspective for global business operations
Increases workforce flexibility, especially for temporary or project-based roles
Employers must follow proper immigration and tax procedures when hiring non-resident aliens, including verifying eligibility and complying with federal withholding requirements.
FAQs
Who qualifies as a non-resident alien?
Anyone who is not a U.S. citizen and does not meet the green card or substantial presence test.
Do non-resident aliens have to pay U.S. taxes?
Yes, but only on income earned from U.S. sources.
Can non-resident aliens claim dependents or tax credits?
Generally no, unless allowed by a tax treaty or specific IRS provisions.
What forms do non-resident aliens file?
They file Form 1040-NR instead of the regular Form 1040 used by citizens and residents.
Are students considered non-resident aliens?
In most cases, yes. International students typically qualify as non-resident aliens unless they meet residency criteria under IRS rules.
