Source of Income
Nonresident aliens' foreign-source income is not subject to U.S. tax, so the source of each kind of income needs to be determined before filing.
| Types and Sources of Income |
Income type: |
Source is determined by: |
Dividends |
Where payer is incorporated |
Interest |
Payer's place of residence |
Pension payments attributable to:
- Contributions (employer or employee, pretax)
- Earnings of domestic (U.S.) trusts
|
Where the services were performed
The U.S. is the source |
Rents |
Where property is located |
Royalties from natural resources |
Where property is located |
Royalties from patents, copyrights, etc. |
Where property is used |
Salaries, wages, and other compensation for personal services |
Where services are performed |
Sale of inventory that was purchased |
Where the inventory is sold (where title passes) |
Sale of personal property (except inventory) |
Tax home of seller |
Sale of real property |
Where the property is located |
Scholarships and fellowships |
Residence of grantor |
