Tax Declaration for Non-Residents – How to Avoid Any Pitfalls

Investing in property, the stock market, and your own business in the United States is becoming more and more popular.

This is particularly true for citizens from Latin America who see the potential in investing in the powerful USA economy.  

However, the declaration of incomes, paying taxes, and obeying the rules and regulations are extremely complex and require the services of qualified accountants to successfully complete all the requirements to the satisfaction of the Internal Revenue Service.

Who Has to Pay Tax in the USA?

The question then arises, who has to file taxes in the United States?

This is not a simple question to answer and depends on several factors and international agreements and treaties.

How Much Tax Do I Have to Pay?

How much tax do I have to pay on my profits in the United States?

This is a common question that has a different answer for each person.

There is a sliding scale of taxes that you pay on your earnings and, depending on how you structure your business affairs, will determine how much tax, if any, you have to pay.

This is where the skills and experience of a professional accounting and tax firm such as TaxLeaf can potentially save you tens of thousands of dollars in tax.

Sources of Income

So, what if all your income comes from outside the US? Again, this is a complex question that requires careful consideration as you do not want the IRS to investigate you for contravening the law.

Presenting Your Financial Information

We are often asked how one must present the income and expenses of an investment property.

If you are a foreigner wishing to trade in the United States, you will have to prepare a full set of Financial Statements to show how much your profit or loss was for the tax year as well as a record of your Assets and Liabilities.

This is also required if you own a rental property or any other real estate.

Withholding Tax

Can the withholding of my earnings be avoided? This is a slightly more complex question and depends on the structure of your investment and your legal status in the USA.

What Do I Pay If I Invest in the United States Stock Market?

Again, this is not a straightforward question as it depends on your status and the structures used to invest.

Annual Tax Obligations

Non-resident taxes are never simple and your tax declaration becomes more complex as you invest in more income-producing assets.

To answer the question of “What are my tax obligations each year?” is quite complex.

It will require that a professional tax accountant review your unique set of circumstances and come up with a plan on how best to reduce your tax obligations by reducing the tax retention or eliminating it altogether, minimizing profits, and structuring your finances in the best way possible.

Here’s what one of our successful business owners has to say about the service and support they receive from being partnered with us;

Cesar Buenavista, Doral, Fl

“I am an Account Manager with TaxLeaf and have been working with clients for more than 6 years. The technology they provide is incredible. I have access to everything from my phone if I need it. They are very professional and provide excellent support for me and my employees.”

To help you learn more about how Taxleaf can assist you with your tax declaration for non-residents, stop everything you’re doing right now and hit Play on the video below to watch our detailed webinar where we explain how tax declarations work and what the annual tax obligations in the USA are for non-residents.

Alternatively, call us now to secure a FREE 30-Minute Consultation with one of our visa experts.

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