Resident and nonresident aliens are taxed in the same manner on U.S.corporate dividend income, bond interest, and interest earned on a U.S.bank savings account.

Question

Quizplus · Accepted Answer

Resident aliens are generally taxed on their worldwide income, the same way as U.S. citizens. Nonresident aliens are taxed only on their income from sources within the United States, but the way specific types of income are taxed can differ. For example, interest income from a U.S. bank savings account is typically not taxable for a nonresident alien, whereas dividend income and bond interest from U.S. sources are subject to U.S. tax withholding.

Resident and Nonresident Aliens Are Taxed in the Same Manner