Do foreign people need to pay income tax in US?
Yes, U.S. citizens have to pay taxes on foreign income if they meet the filing thresholds, which are generally equivalent to the standard deduction for your filing status. You may wonder why U.S. citizens pay taxes on income earned abroad. U.S. taxes are based on citizenship, not country of residence.
How to file tax returns with foreign income?
File Form 2555 for Foreign Income. 2020, 2021 Credit, Deduction For U.S. Citizens Living Abroad U.S. Citizens Working Or Living Abroad Can Prepare Taxes Online At eFile.com. Claim The Foreign Tax Credit And Find Out If You Also Have To Pay Foreign Taxes.
What is non resident withholding?
You may need to withhold tax if you make nonwage payments to nonresidents. This is called nonresident withholding. Payers who withhold tax on nonresidents are called withholding agents. Examples of withholding agents: