Cecilia, a Brazilian citizen and resident, spent 120 days working in the United States in the current year and earned $50,000. Because she spent more than 90 days in the United States, Cecilia's income will be treated as U.S. source and subject to U.S. taxation. The United States does not have an income tax treaty with Brazil.
Under the Code, compensation earned in the United States is U.S. source income and subject to tax if the individual was in the United States for more than 90 days and the compensation exceeds $3,000. If Cecilia were a resident of a country with which the United States has a treaty, she could be exempt from U.S. taxation under a treaty provision that allows her to work in the United States for more than 90 days during the year.

Question

Quizplus · Accepted Answer

Cecilia's income is U.S. source and subject to U.S. taxation because she spent more than 90 days in the U.S. and earned more than $3,000, and there is no tax treaty with Brazil to exempt her.

Cecilia, a Brazilian Citizen and Resident, Spent 120 Days Working