Nonresident Alien

Katelynn Minott, CPA & CEO July 11th, 2026

A nonresident alien is a person who is not a U.S. citizen or U.S. national and is not treated as a U.S. resident for federal income tax purposes. For U.S. expats, the term often matters when filing with a non-U.S. citizen spouse, paying a foreign contractor, receiving U.S.-source income, or reviewing U.S. estate and gift tax exposure.

Why it matters for U.S. expats

Nonresident alien status affects filing status, income reporting, withholding, treaty claims, and whether a spouse’s worldwide income is brought into the U.S. tax system. A U.S. citizen living abroad may be married to a nonresident alien spouse, pay nonresident alien contractors, receive income through a foreign structure, or inherit from a nonresident alien family member, so the classification can affect more than one part of an expat tax return.

Common questions

1. Who is a nonresident alien for U.S. tax purposes?

A nonresident alien is an individual who is not a U.S. citizen or U.S. national and has not passed the green card test or substantial presence test.

2. Is a nonresident alien the same as a foreign citizen?

No. A foreign citizen can be a U.S. resident alien for tax purposes if they pass the green card test or substantial presence test. Nonresident alien is a U.S. tax status, not simply a citizenship label.

3. Can a U.S. citizen be a nonresident alien?

No. U.S. citizens are not nonresident aliens, even when they live outside the United States.

4. What is the green card test?

The green card test treats a person as a U.S. resident for tax purposes if they were a lawful permanent resident of the United States at any time during the calendar year, unless a treaty or special rule changes the result.

5. What is the substantial presence test?

The substantial presence test is a day-count test based on physical presence in the United States. It looks at days in the current year and a weighted portion of days from the two prior years.

6. What form does a nonresident alien file?

A nonresident alien with a U.S. filing requirement usually files Form 1040-NR, U.S. Nonresident Alien Income Tax Return.

7. When does a nonresident alien need to file a U.S. tax return?

A nonresident alien may need to file if they are engaged in a U.S. trade or business, have U.S. income that was not fully covered by withholding, or need to claim a refund, deduction, credit, or treaty benefit.

8. Is a nonresident alien taxed on worldwide income?

No. Nonresident aliens are taxed under U.S. rules on certain U.S.-source income and income effectively connected with a U.S. trade or business, not on worldwide income in the same way as U.S. citizens and resident aliens.

9. What is effectively connected income?

Effectively connected income is income connected with a U.S. trade or business. It is taxed after allowable deductions at the rates that apply to U.S. citizens and residents.

10. What is FDAP income?

FDAP income is fixed, determinable, annual, or periodical income, such as certain U.S.-source interest, dividends, rents, royalties, or pensions. It is often subject to 30% withholding unless a treaty provides a lower rate.

11. Can a U.S. expat file jointly with a nonresident alien spouse?

Yes, if both spouses make an election to treat the nonresident alien spouse as a U.S. resident for federal income tax purposes. That election usually requires the spouse’s worldwide income to be reported on the joint U.S. return.

12. Can a U.S. expat file separately from a nonresident alien spouse?

Yes. If no resident-spouse election is made, the U.S. citizen or resident spouse can usually file as married filing separately, or as head of household if the rules are met.

13. Does a nonresident alien spouse need an ITIN?

A nonresident alien spouse needs an ITIN if they are included on a U.S. return, file their own U.S. return, or need a U.S. taxpayer identification number for another IRS purpose.

14. Do nonresident aliens file FBAR?

A nonresident alien does not file FBAR solely because they own foreign accounts. FBAR applies to U.S. persons, including U.S. citizens, U.S. residents, and certain U.S. entities.

15. Can a nonresident alien claim a tax treaty benefit?

Yes, if they qualify under an applicable U.S. income tax treaty and meet the documentation requirements. Treaty claims often involve Form 1040-NR, Form 8833, Form W-8BEN, or withholding documentation.

When to get help

Professional guidance is important when:

You are married to a nonresident alien spouse.
You are deciding whether to make a resident-spouse election and file jointly.
A nonresident alien spouse, contractor, investor, beneficiary, or family member has U.S.-source income.
You need to file Form 1040-NR or claim a treaty benefit.
You received Form 1042-S or had U.S. tax withheld from income.
You are unsure whether the green card test or substantial presence test applies.
You need to coordinate nonresident alien status with estate, gift, trust, or inheritance planning.

Bright!Tax can review U.S. tax residency status, compare filing options for mixed-nationality couples, and prepare the forms needed for nonresident alien reporting, withholding, or treaty claims. Get started with Bright!Tax.

Nonresident Alien vs Resident Alien: Understanding the Basics

Official sources

Reviewed by

Katelynn Minott, CPA & CEO

Last reviewed

July 2026