Basics of Investing

Question: I’m a non resident alien, how can I pay federal and state income taxes?

Hi, I’m a foreigner, I just bought an investment property and will be receiving income from rents. How can I pay federal and state income tax if I don’t live in the US and I don’t have a social scurity number
I do not intent to immigrate to the US. I just bought this property because it was a good investment. I know taxes must be paid on income from this property so that’s what I want to do. I only come to the US on ocasion once, maybe twice a year.

Answer: You should file a Form 1040NR for the first year that you earned income from this property (you will attach Schedule E to report the rental income). You are NOT required to report any of your non-US income.

When you file Form 1040NR, attach Form W-7 to the front of it. That form is an application for you to obtain a US Taxpayer Identification Number, which you must have if you own income-producing real estate in the US. The instructions to Form W-7 describe the details for this process.

The forms are at the IRS website at www.irs.gov.

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