Identify which of the following statements is true.
A)If a foreign national has a closer connection with his home country, the individual is taxed as a resident alien.
B)To obtain resident status, an alien must meet both the lawful permanent resident test and the substantial presence test.
C)An individual who is a resident alien of the United States is taxed on his or her worldwide income at the same tax rates that would apply to a U.S. citizen.
D)All of the above are false.

Question

Quizplus · Accepted Answer

This statement is true. If an individual qualifies as a resident alien of the United States, he or she is subject to U.S. tax on worldwide income at the same tax rates as U.S. citizens. A is incorrect because having a closer connection with one's home country does not determine one's tax status in the U.S. B is incorrect because there are other ways to obtain resident status (such as through the green card lottery or employment sponsorship) that do not require meeting the substantial presence test. D is incorrect because statement C is true.

Identify Which of the Following Statements Is True