EY - US Personal Tax and Immigration Guide PDF

1472
United States
ey.com/GlobalTaxGuides
ey.com/TaxGuidesApp
New York, New York GMT -5
EY
5 Times Square
New York, NY 10036
United States
Executive contacts
George Brooks, +1 (212) 773-8237
Americas Leader Email: george.brooks@ey.com
People Advisory Services
Leslie Fiorentino, +1 (617) 585-0449
Americas Director Email: leslie.fiorentino@ey.com
Mobility Services
Michael Schoonmaker, +1 (212) 773-6014
Americas Director Email: michael.schoonmaker@ey.com
Reward Services
Michael Abdalian, +1 (216) 583-1508
Director of Knowledge Email: michael.abdalian@ey.com
Keith Longman, +1 (612) 371-8367
People Advisory Services Email: keith.longman@ey.com
Tax Quality Leader
Jason Ward, +1 (214) 754-3940
US Director Fax: +1 (866) 390-8941
Assignment Services Email: jason.ward@ey.com
Kelly Guterl, +1 (617) 585-0421
Global Equity Email: kelly.guterl@ey.com
Immigration contacts
Alex Israel +1 (416) 943-2698
Email: alex.d.israel@ca.ey.com
Marwah Serag +1 (416) 943-2944
Email: marwah.serag@ca.ey.com
Eric Gerstein +1 (416) 943-5337
Email: eric.gerstein@ca.ey.com
Private Client Services contacts

Jennifer Einziger +1 (202) 327-6216
Email: jennifer.einziger@ey.com
Marianne R. Kayan +1 (202) 327-6071
Email: marianne.kayan@ey.com
David H. Kirk +1 (202) 327-7189
Email: david.kirk@ey.com
Justin Ransome +1 (202) 327-7043
Email: justin.ransome@ey.com
A. Income tax
Who is liable
Territoriality. US citizens and resident aliens are subject to tax on
their worldwide income, regardless of source. US citizens and
resident aliens may exclude, however, up to USD101,300 (for
2016) of their foreign-earned income plus certain housing
expenses if they meet specified qualifying tests and if they file
US tax returns to claim the exclusion.
U N I T E D S TAT E S 1473
A nonresident alien is subject to US tax on income that is effec-
tively connected with a US trade or business and on US-source
fixed or determinable, annual or periodic gains, profits and in-
come (generally investment income, including dividends, royalties
and rental income). US-source investment income is taxed on a
gross basis at a flat rate of 30%. Income effectively connected
with a US trade or business is taxed after subtracting related
deductions at the graduated rates listed in Rates. Portfolio interest
and, generally, capital gains from the sale of stock in a US com-
pany are exempt from the 30% tax. Moreover, an election to tax
rental income on a net basis is available. However, gains from
sales of US real property interests are usually considered to be
effectively connected income, and special complex rules apply.
Definition of resident. Residence for income tax purposes gen-
erally has no bearing on an individuals immigration status.
Generally, foreign nationals may be considered resident aliens if
they are lawful permanent residents (green card holders; see
Section G) or if their physical presence in the United States meets
the substantial presence test. Under the substantial presence test,
a foreign national is deemed to be a US resident if the individual
fulfills both of the following conditions:
The individual is present in the United States for at least 31 days
during the current year.
The individual is considered to have been present in the United
States for at least 183 days during a consecutive three-year test
period that includes the current year, using a formula weighted
with the following percentages:
Current year 100.00%
1st preceding year 33.33%
2nd preceding year 16.67%
For example, 122 days of presence during each of the three
consecutive years causes a foreign national to be considered a
US resident under the substantial presence test.
Among several exceptions to the substantial presence test are the
following:
Days present as a qualified student, teacher or trainee, or if a
medical condition prevented departure, are not counted.
An individual might claim to be a nonresident of the United
States by virtue of having a closer connection (such as a tax
home) to a foreign country.
Bilateral income tax treaties may override domestic US tax
rules for dual residents.
The Internal Revenue Service (IRS) has issued regulations that
require individuals to file statements with the IRS setting forth the
facts that prove their claims for exemption.
In certain circumstances, it may be beneficial for an individual to
be considered a resident of the United States for income tax pur-
poses. An individual may make what is known as a first-year
election to be treated as a resident in the year of arrival if certain
conditions are met.
Income subject to tax. In general, gross income must be segre-
gated into the following three separate baskets:
1474 U N I T E D S TAT E S
Earned income, which is generally salary and earnings from
active trades or businesses
Portfolio income, which is generally investment income, includ-
ing interest, dividends, certain royalties and gains from the
disposition of investment property
Passive income, which is generally income from traditional tax-
shelter investments including real estate
Examples of items that are not included in taxable income are
gifts, unrealized appreciation in the value of property, interest
received on municipal bonds, certain amounts received (for
example, death benefits paid) under US qualified life insurance
contracts, certain employer-paid education costs, employer-paid
retirement planning services and qualified distributions from Roth
individual retirement accounts (IRAs) or education savings
accounts.
Employment income. In addition to cash payments, taxable salary
generally includes all employer-paid items, except qualifying
moving expenses, medical insurance premiums, pension contri-
butions to a US qualified plan and, for qualifying individuals on
short-term assignments of one year or less, meals and temporary
housing expenses.
Education allowances provided by employers to their employees
children are taxable for income and social security tax purposes.
In general, a nonresident alien who performs personal services as
an employee in the United States at any time during the tax year
is considered to be engaged in a US trade or business. An excep-
tion to this rule applies to a nonresident alien performing ser-
vices in the United States if all of the following conditions apply:
The services are performed for a foreign employer.
The employee is present no more than 90 days during the tax
year.
Compensation for the services does not exceed USD3,000.
These conditions are similar to those contained in many income
tax treaties, although the treaties often expand the time limit to
183 days and increase or eliminate the maximum dollar amount
of compensation.
If an employee does not fall under the above statutory exception
or under a treaty exception, all US-source compensation received
in that year is considered effectively connected income (not just
the amount exceeding the USD3,000 limitation or the dollar
limitation under a treaty). This income includes wages, bonuses
and reimbursements for certain living expenses paid to, or on
behalf of, the employee.
Compensation is considered to be from a US source if it is paid
for services performed in the United States. The place where the
income is paid or received is irrelevant in determining its source.
If income is paid for services performed partly in the United
States and partly in a foreign country, and if the amount of income
attributable to services performed in the United States cannot be
accurately determined, the US portion is determined on a work-
day ratio basis. Fringe benefits that meet certain requirements are
sourced to the persons principal place of work. These benefits
include moving expenses, housing, primary and secondary edu-
cation for dependents and local transportation.
Effectively connected income retains its character even if received
before or after a US trade or business ceases operations. Conse-
quently, wages for services performed in the United States, but
received during a year in which a nonresident alien reports no US
workdays, are taxed at the graduated rates instead of the flat 30%
rate.
States often follow the federal tax treatment in determining if a
nonresident aliens income is subject to state taxation; however,
certain states tax income of a nonresident regardless of federal tax
treatment or treaty relief.
Self-employment income. In general, a nonresident alien who per-
forms independent personal services in the United States at any
time during the tax year is considered to be engaged in a US trade
or business.
Although subject to tax at the graduated rates, compensation paid
to a nonresident alien for performing independent personal ser-
vices in the United States is subject to a 30% withholding tax. A
nonresident alien must file a US tax return to claim a refund or
to pay any additional tax due. If compensation is exempt from US
tax under an income tax treaty or if the amount paid is not
greater than the personal exemption amount (USD4,050 in
2016), a nonresident alien may request exemption from withhold-
ing by preparing Form 8233, Exemption from Withholding on
Compensation for Independent Personal Services of a Non-
resident Alien Individual, and then giving it to the withholding
agent (payer). In addition, many US income tax treaties contain
separate provisions affecting the taxation of independent per-
sonal services income.
Investment income. Dividends, interest income and capital gains
are considered portfolio income and are generally taxed at the
ordinary rates (however, see Capital gains and losses, and
Dividends). Certain types of interest income, including interest
on certain state and local government obligations, are exempt
from federal tax, but may be subject to alternative minimum tax
(AMT; see Rates).
Net income from the rental of real property and from royalties is
aggregated with other income and taxed at the rates set forth in
Rates.
Directors fees. In general, directors fees are considered to be
earnings from self-employment (see Self-employment income).
Deferred compensation and participation in foreign pension plans.
The United States has very complex rules regarding the taxation
of deferred compensation. If a plan of deferral does not meet the
requirements of the law, significant penalties and interest may be
charged. Complex rules apply to the taxation related to participa-
tion in a non-US retirement plan. In many cases, continued par-
ticipation in the home country plan may result in income that is
taxable in the United States. Certain income tax treaties attempt
to address this issue.
Taxation of employer-provided stock options
Qualified stock option plans. Under incentive stock option (ISO)
rules, options provided to employees under qualified stock option
plans are not subject to tax at the time the option is granted nor at
the time the employee exercises the option and buys the stock.
However, at the time of exercise, the difference between the exer-
cise price and the fair market value of the stock at the date of
exercise is considered a tax preference item for AMT purposes
(see Rates). Tax is levied at capital gains tax rates when the
employee sells the stock (see Capital gains and losses). The
employees basis in the stock is the amount paid for the stock at
the time the option is exercised. Consequently, the employee
recognizes a capital gain or loss in the amount of the difference
between the sale price and the grant price. For purposes of deter-
mining whether the capital gain is long-term or short-term, the
holding period begins on the date after the option is exercised, not
on the date the option is granted. Stock purchased under an ISO
may not be sold within two years from the grant date and within
one year from the exercise date. If the stock is sold before the
expiration of the required holding period, any gain on the sale is
treated as ordinary income.
Non-qualified stock option plans. A stock option provided to an
employee under a non-qualified plan is taxed when it is granted
if the option has a readily ascertainable fair market value at that
time. An option that is not actively traded on an established mar-
ket has a readily ascertainable fair market value only if all of the
following conditions are met:
The option is transferable.
The option is exercisable immediately and in full when it is
granted.
No conditions or restrictions are placed on the option that would
have a significant effect on its fair market value.
The fair market value of the option privilege must be readily
ascertainable.
The above conditions are seldom satisfied. Consequently, most
non-qualified options that are not traded on an established mar-
ket do not have a readily ascertainable fair market value and are
not taxable at the date of grant.
The exercise of a non-qualified stock option triggers a taxable
event. An employee recognizes ordinary income in the amount of
the value of the stock purchased, less any amount paid for the
stock or the option. When the stock is sold, the difference between
the sale price and the fair market value of the stock at the date of
exercise, if any, is taxed as a capital gain.
Capital gains and losses. Net capital gain income is taxed at ordi-
nary rates, except that the maximum rate for long-term gains is
limited to the following:
0% for individuals in the 10% or 15% bracket
20% for individuals in the 39.6% bracket
15% for individuals in all other brackets
Net capital gain is equal to the difference between net long-term
capital gains over net short-term capital losses. Long-term refers
to assets held longer than 12 months. Short-term capital gains are
taxed as ordinary income at the rates set forth in Rates.
Investors who hold qualified small business stock may be
entitled to exclude from income part or all of the gain realized on
disposition of the stock.
Once every two years, US taxpayers, including resident aliens,
may exclude up to USD250,000 (USD500,000 for married taxpay-
ers filing jointly) of gain derived from the sale of a principal
residence. To be eligible for the exclusion, the taxpayer must
generally have owned the residence and used it as a principal
residence for at least two of the five years immediately preceding
the sale. However, if a taxpayer moves due to a change in place
of employment, for health reasons or as a result of unforeseen
circumstances, a fraction of the maximum exclusion amount is
allowed in determining whether any taxable gain must be report-
ed. The numerator of the fraction is generally the length of time
the home is used as a principal residence, and the denominator is
two years. The repayment of a foreign currency mortgage obliga-
tion may result in a taxable exchange-rate gain, regardless of any
economic gain or loss on the sale of the principal residence. In
certain cases, part of the gain on the sale of a principal residence
may not be eligible for exclusion. To the extent the taxpayer has
non-qualified use of the property, that portion of the gain
(determined on a time basis over the total holding period of the
property) is not eligible for exclusion from income. A complex
set of rules applies to determine whether a particular use of the
property, such as renting out the property or leaving it vacant, is
considered a non-qualified use.
Capital losses are fully deductible against capital gains. However,
net capital losses are deductible against other income only up to
an annual limit of USD3,000. Unused capital losses may be car-
ried forward indefinitely. Losses attributable to personal assets
(for example, a personal residence or an automobile) are not
deductible.
Dividends. Dividends received by individuals from domestic cor-
porations and qualified foreign corporations are taxed at the
same special rates as those applicable to net capital gains, for
both the regular tax and the alternative minimum tax.
Consequently, dividends are taxed at the following rates:
0% for individuals in the 10% or 15% bracket
20% for individuals in the 39.6% bracket
15% for individuals in all other brackets
To qualify for the 15% (or 0% or 20%) tax rate, the shareholder
must hold a share of stock for more than 60 days during the
120-day period beginning 60 days before the ex-dividend date.
Other dividends are taxed at ordinary rates.
Deductions
Deductible expenses. Certain types of deductions, including
amounts related to producing gross income, are subtracted to
arrive at adjusted gross income. Alimony payments to a former
spouse and qualifying unreimbursed moving expenses are among
the most commonly claimed deductions in this category. Alimony
(but not child support) must meet certain criteria, and must be
included in the recipients gross income, to be deductible by the
payer. A tax of 30% generally must be withheld (and remitted to
the IRS) from alimony paid by a US citizen or resident to a
nonresident-alien former spouse. Certain US income tax treaties
may reduce the 30% withholding tax rate (see Section E).
An individual whose tax home is outside the United States may
be able to deduct away-from-home travel and living expenses that
relate to work in the United States. US tax law provides for the
deduction of ordinary and necessary travel and living expenses in
performing services while an individual is temporarily away from
home. US assignments of one year or less are usually presumed
to be temporary, and assignments of more than one year are gen-
erally considered permanent.
Complex rules determine eligibility for other deductions from
gross income. For example, depending on the taxpayers income
level, interest of up to USD2,500 on qualified educational loans,
and individual retirement account (IRA) contributions of up to
USD5,500 (USD6,500 if age 50 or older at the end of 2016) may
be deducted.
After adjusted gross income is determined, a citizen or resident
alien is entitled to claim the greater of itemized deductions or a
standard deduction. The amount of the standard deduction varies,
depending on the taxpayers filing status. For 2016, the standard
deduction is USD12,600 for married individuals filing a joint
return, USD9,300 for a head of household, USD6,300 for a single
(not married) individual and USD6,300 for a married taxpayer
filing a separate return.
Itemized deductions include the following items:
Unreimbursed medical expenses to the extent that they exceed
10% of adjusted gross income (7.5% if age 65 or older)
Income, general sales and property taxes of states and localities
Foreign income taxes paid if a foreign tax credit is not elected
Certain interest expense, generally home mortgage interest and
investment interest expense
Casualty and theft losses to the extent that they exceed 10% of
adjusted gross income
Gambling losses to the extent of gambling winnings
Charitable contributions made to qualified US charities
Unreimbursed employee business expenses and other miscel-
laneous itemized deductions, to the extent that the net total
exceeds 2% of adjusted gross income
Itemized deductions, other than medical expenses, casualty, theft
and gambling losses, and investment interest expense, must be
reduced by an amount equal to 3% of the taxpayers 2016 adjusted
gross income in excess of USD311,300 (married persons filing
jointly), USD285,350 (head of household), USD259,400 (single
persons) or USD155,650 (married persons filing separately). The
reduction amount may not reduce the amount of itemized deduc-
tions by more than 80%.
A nonresident alien may not use the standard deduction instead of
actual itemized deductions. Also, the types of itemized deductions
a nonresident alien may claim are limited to casualty losses, chari-
table contributions made to qualified US charities, certain miscel-
laneous deductions, and state and local taxes imposed on effec-
tively connected income. A nonresident alien may not claim an
itemized deduction for medical expenses, taxes (other than state and
local income taxes) or most interest expenses. In addition, a non-
resident alien is normally entitled to only one personal exemption.
Personal exemptions. Individuals who are not dependents of other
taxpayers are entitled to deduct a personal exemption in arriving
at taxable income. For 2016, each personal exemption equals
USD4,050. US citizens and residents are generally each entitled
to claim an additional personal exemption for a spouse if a joint
return is filed. However, if the spouse is a nonresident alien and
a joint return is not filed, the taxpayer may claim this exemption
only if the spouse has no US-source gross income and is not a
dependent of another taxpayer. Additional personal exemptions
may be claimed for each qualified dependent who is a US citizen
or, in certain circumstances, a resident of the United States,
Canada or Mexico for some part of the tax year. US income tax
treaties may modify the preceding rules.
Personal exemptions are phased out by 2% for each USD2,500
(or part thereof) by which 2016 adjusted gross income exceeds
USD311,300 (married persons filing jointly), USD285,350 (head
of household) or USD259,400 (single persons). For married per-
sons filing separately, the exemptions are phased out by 2% for
each USD1,250 by which adjusted gross income exceeds
USD155,650.
Business deductions. Self-employed individuals are entitled to the
same deductions as employees, except that they may also deduct
directly related ordinary and necessary business expenses. How-
ever, special rules may apply to limit business deductions if a
taxpayers business activity does not result in a profit for three
out of five years. In this situation, the activity may be classified
as a hobby, and the expenses are deductible only if they qualify
as itemized deductions. Self-employed individuals may establish,
and may deduct contributions paid to, their own retirement plans,
subject to special limitations.
Rates. The applicable US tax rates depend on whether an individ-
ual is married or not and, if married, whether an individual elects
to file a joint return with his or her spouse. Certain individuals
also qualify to file as heads of households.
Unmarried nonresident aliens are taxed under the rates for single
individuals. Married nonresidents whose spouses are also non-
residents are generally taxed under the rates for married persons
filing separately.
The tax brackets and rates for 2016 are set forth in the tables
below. The income brackets in these tables are indexed annually
for inflation. The following are the tables.
Married filing joint return
Taxable income Tax rate Tax due Cumulative tax due
USD % USD USD
First 18,550 10 1,855.00 1,855.00
Next 56,750 15 8,512.50 10,367.50
Next 76,600 25 19,150.00 29,517.50
Next 79,550 28 22,274.00 51,791.50
Next 181,900 33 60,027.00 111,818.50
Next 53,600 35 18,760.00 130,578.50
Above 466,950 39.6
Married filing separate return
USD % USD USD
First 9,275 10 927.50 927.50
Next 28,375 15 4,256.75 5,183.75
Next 38,300 25 9,575.00 14,758.75
Next 39,775 28 11,137.00 25,895.75
Next 90,950 33 30,013.50 55,909.25
Next 26,800 35 9,380.00 65,289.25
Above 233,475 39.6
Head of household
USD % USD USD
First 13,250 10 1,325.00 1,325.00
Next 37,150 15 5,572.50 6,897.50
Next 79,750 25 19,937.50 26,835.00
Next 80,650 28 22,582.00 49,417.00
Next 202,550 33 66,841.50 116,258.50
Next 27,650 35 9,677.50 125,936.00
Above 441,000 39.6
Single individual
USD % USD USD
First 9,275 10 927.50 927.50
Next 28,375 15 4,256.25 5,183.75
Next 53,500 25 13,375.00 18,558.75
Next 99,000 28 27,720.00 46,278.75
Next 223,200 33 73,656.00 119,934.75
Next 1,700 35 595.00 120,529.75
Above 415,050 39.6
The above rates are used to compute an individuals regular fed-
eral tax liability. In addition, higher income taxpayers (income
over USD250,000 for married filing jointly and USD200,000 for
single) are subject to a 3.8% tax on their net investment
income. The definition of net investment income is broad and
essentially includes all income other than income from a trade or
business. Compensation from personal services is generally
excluded from this tax.
The United States also imposes alternative minimum tax (AMT)
at a rate of 26% on alternative minimum taxable income, up to
USD186,300, and at a rate of 28% on alternative minimum tax-
able income exceeding USD186,300 (long-term capital gains
and qualified dividends are generally taxed at lower rates of
15% or 20%; see Capital gains and losses and Dividends). The
primary purpose of AMT is to prevent individuals with substantial
income from using preferential tax deductions (such as acceler-
ated depreciation), exclusions (such as certain tax-exempt
income) and credits to substantially reduce or to eliminate their
tax liability. It is an alternative tax because, after an individual
computes both the regular tax and AMT liabilities, the greater of
the two amounts constitutes the final liability.
Some states, cities and municipalities also levy income tax. City
or municipal income tax rates are generally 1% or lower. However,
the top 2016 rate for residents of New York City is 3.876%. State
income tax rates generally range from 0% to 12%. Therefore, an
individuals total income tax liability depends on the state and the
municipality where the individual resides or works. For a list of
maximum state and certain local tax rates, see Appendix 1.
Credits. Tax credits directly reduce income tax liability rather than
taxable income and therefore provide a dollar-for-dollar benefit.
Most credits are limited, depending on the taxpayers income
level. Credits include a maximum USD13,400 credit for quali-
fied adoption expenses, a USD1,000 child tax credit for depen-
dents under 17 years of age and two alternative higher education
credits, with maximums of USD2,000 and USD2,500, respec-
tively.
Relief for losses. In general, passive losses, including those gen-
erated from limited-partnership investments or rental real estate,
may be offset only against income generated from passive
activities.
Limited relief may be available for real estate rental losses. For
example, an individual who actively participates in rental activity
may use up to USD25,000 of losses to offset other types of
income. The USD25,000 offset is phased out for taxpayers with
adjusted gross income of between USD100,000 and USD150,000,
and special rules apply to married individuals filing separate tax
returns.
Disallowed losses may be carried forward indefinitely and used to
offset net passive income in future years. Any remaining loss may
be used in full when a taxpayer sells the investment in a transac-
tion that is recognized for tax purposes.
B. Other taxes
Net worth tax. No federal tax is levied on an individuals net worth.
However, some states and municipalities impose a tax on an
individuals net worth.
Estate and gift tax. US estate and gift taxes are imposed at
graduated rates ranging from 18% to 40% on the value of prop-
erty transferred by reason of death or gift. In general, citizens and
residents are entitled to a unified exemption of USD5 million
(indexed for inflation; USD5,450,000 for 2016) on these taxes. A
third transfer tax, known as the generation-skipping transfer
(GST) tax, operates under a complex set of rules.
In general, transfers between spouses who are US citizens, or
from a non-US citizen to a US citizen spouse, are not subject to
estate or gift taxes. However, transfers from a US citizen to a
non-US citizen spouse may be subject to estate or gift tax.
Like US income tax rules, US estate and gift tax rules differ,
depending on whether a foreign national is considered to be a
resident or nonresident alien. However, the distinction between
residents and nonresidents differs from that under US income tax
rules. For estate and gift tax purposes, a nonresident is a foreign
national who is not a US citizen and whose domicile is outside
the United States at the date of death or gift. A persons domicile
is defined generally as the place the individual regards as his or
her permanent homethat is, the place where he or she intends
to return, even after a period of absence.
Application of US estate and gift tax rules may be modified if a
nonresident alien is a resident of a country that has entered into
an estate and gift tax treaty with the United States. The United
States currently has estate and/or gift tax treaties with the follow-
ing jurisdictions.
Australia Germany Netherlands
Austria Greece Norway
Denmark Ireland South Africa
Finland Italy Switzerland
France Japan United Kingdom
Gift tax. US citizens and resident aliens are subject to gift tax on
transfers of all property, tangible and intangible, regardless of the
location of the property. Tax is imposed on the fair market value
of property on the date of the gift, at graduated rates determined
by the individuals cumulative lifetime transfers.
Each year, a donor is entitled to exclude from taxable income gifts
of present interests valued at up to USD14,000 (for 2016) for
each recipient. A husband and wife may elect to treat gifts made
by one spouse as being made one-half by each spouse. This gift-
splitting election on joint gifts increases the annual exclusion to
USD28,000 (for 2016) for each recipient. Gifts in excess of the
annual exclusion are subject to taxes ranging from 18% to 40%.
However, a credit may be used to offset this liability.
A US citizen or resident is exempt from gift tax on annual trans-
fers (other than gifts of future interests in property) of up to
USD148,000 (for 2016) to a non-US citizen spouse.
Foreign nationals who are not domiciled in the United States must
generally pay gift tax on transfers of real property and tangible
personal property located in the United States. Intangible property,
including stocks and bonds, is generally exempt. The gift tax rates
for nonresidents are the same as those for citizens and residents.
These nonresidents are allowed to give up to USD14,000 (for
2016) annually to each recipient with no gift tax consequences,
but they may not split gifts with their spouses.
US citizens or resident aliens (as defined for income tax pur-
poses) are required to report gifts or bequests from foreign sources
in excess of USD15,671 (for 2016), in aggregate, but they are
generally not subject to tax. However, the IRS has not required
gifts from foreign individuals or foreign estates to be reported
unless the aggregate gifts exceed USD100,000. Substantial penal-
ties may be imposed for failure to report such gifts or bequests.
Estate tax. The estate of a US citizen or resident includes all
property, tangible and intangible, regardless of location.
Property transferred at death from a US citizen to a non-US citi-
zen spouse is generally not excluded from the decedents gross
estate, unless the property is placed in a qualified domestic trust
or the surviving spouse becomes a US citizen before the estate
tax return is due. To be considered a qualified domestic trust, a
trust must satisfy the following conditions:
At least one trustee of the trust must be a US citizen or a
domestic corporation, and no distribution from the trust may be
made without a trustees approval.
The trust must meet the requirements prescribed by Treasury
Department regulations.
The executor must make an irrevocable election to be treated as
a qualified domestic trust on the estate tax return.
Estate tax is levied on the property in the trust if any of the fol-
lowing events occurs:
The trust ceases at any time to meet the above requirements.
The corpus is distributed prior to the surviving spouses death,
except in cases of hardship.
The surviving spouse dies.
For US tax purposes, the estate of a nonresident includes only
property deemed to be located in the United States. This gener-
ally includes tangible, intangible and real property located within
the United States at the time of death. For this purpose, shares of
US domestic corporations, US property owned through certain
trusts and certain debt obligations of US residents are considered
to be property located in the United States. In addition, in some
instances, US property held by a partnership or limited liability
company may be considered to be property located in the United
States, but the law in this area is unclear. The estate tax rates are
the same as those for citizens and residents. An estate tax return
must be filed if the value of a nonresident aliens gross estate
exceeds USD60,000.
Expatriation tax. Before 17 June 2008, the United States did not
have an exit tax. However, former US citizens and former long-
term permanent residents were subject to reporting requirements
and potentially to US income tax under a complex set of rules
generally in effect for 10 years following expatriation.
Effective from 17 June 2008, certain individuals known as cov-
ered expatriates are immediately taxed on the net unrealized
gain in their property exceeding USD600,000 (indexed for infla-
tion; USD693,000 for 2016) as if they sold the property for fair
market value the day before expatriating or terminating their US
residency. In general, covered expatriates are US citizens, or
long-term residents (green card holders [see Section G] for any
part of 8 tax years during the preceding 15 years) who either have
a five-year average income tax liability exceeding USD124,000
(indexed for inflation; USD161,000 for 2016) or a net worth of
USD2 million or more, or who have not complied with their US
tax filing obligations for the preceding five years. This treatment
applies to most types of property interests held by individuals.
The above rules also affect the taxation of certain deferred com-
pensation items (including foreign and US pension plans,
deferred compensation plans, and equity-based compensation
plans), interests in and distributions from non-grantor trusts and
certain tax-deferred accounts, such as so-called 529 plans,
Coverdell education savings accounts and health-savings
accounts. In many cases, the present value of the interest in the
deferred compensation items and other tax-deferred accounts is
subject to immediate taxation.
At the election of the taxpayer, subject to approval of the IRS,
payment of the exit tax may be deferred if adequate security is
provided. Such deferral is irrevocable, carries an interest charge
and requires the taxpayer to waive any treaty rights with respect
to the taxation of the property.
US citizens or residents receiving gifts or bequests of more than
USD10,000 (indexed for inflation; USD14,000 for 2016) from
covered expatriates are taxed at the highest gift or estate tax rate
currently in effect (40% in 2016). Under the general US rules of
gift taxation, tax is assessed on the donor. However, the rule
described above imposes tax on the US citizens or residents
receiving the gifts. This rule does not have a time limit. The tax on
gifts or bequests from a covered expatriate to a US citizen or
resident may be assessed at any time such a gift or bequest is
received after the expatriation of the covered expatriate.
C. Social security taxes

Social security tax. Under the Federal Insurance Contributions Act
(FICA), social security tax is imposed on wages or salaries
received by individual employees to fund retirement benefits paid
by the federal government. The following two taxes are imposed
under FICA:
Old-age, survivors and disability insurance (OASDI)
Hospital insurance (Medicare)
For 2016, the OASDI tax is imposed on the first USD118,500 at
a rate of 6.2% on the employee and 6.2% on the employer.
Medicare tax is imposed, without limit, at a rate of 1.45% on the
employee and 1.45% on the employer. In addition, higher income
employees (but not their employers) pay an extra 0.9% Medicare
tax. The income threshold varies by tax return filing status.
Married couples filing jointly pay the extra tax on their combined
wages in excess of USD250,000, single taxpayers and heads of
households on wages exceeding USD200,000, and married tax-
payers filing separately on wages exceeding USD125,000. Self-
employment income (see below) is added to the amount of wages
when determining the threshold.
FICA tax is imposed on compensation for services performed in
the United States, regardless of the citizenship or residence of the
employee or employer. Consequently, absent an exception, non-
resident alien employees who perform services in the United
States are subject to FICA tax, even though they may be exempt
from US income tax under a statutory rule or an income tax
treaty. Certain categories of individuals are exempt from FICA
tax, including foreign government employees, exchange visitors
in the United States under J visas, foreign students holding F, M
or Q visas, and individuals covered under social security totaliza-
tion agreements between the United States and other countries.
These agreements allow qualifying individuals to continue paying
into the social security system of their home countries, usually for
a period of five years.
Totalization agreements are currently in effect with the following
jurisdictions.
Australia Germany Norway
Austria Greece Poland
Belgium Ireland Portugal
Canada Italy Slovak Republic
Chile Japan Spain
Czech Republic Korea (South) Sweden
Denmark Luxembourg Switzerland
Finland Netherlands United Kingdom
France
Agreements with Brazil, Hungary and Mexico have been signed
but are not yet in force.
Self-employment tax. Self-employment tax is imposed under the
Self-Employment Contributions Act (SECA) on self-employ-
ment income, net of business expenses, that is derived by US
citizens and resident aliens. The following two taxes are imposed
under SECA:
Old-age, survivors and disability insurance (OASDI)
Hospital insurance (Medicare)
For 2016, the OASDI tax is imposed on the first USD118,500 of
the net earnings of a self-employed individual at a rate of 12.4%.
Medicare tax is imposed, without limit, at a rate of 2.9%. In addi-
tion, higher income individuals pay an extra 0.9% Medicare tax.
The income threshold varies by tax return filing status. Married
couples filing jointly pay the extra tax on their combined self-
employment income in excess of USD250,000, single taxpayers
and heads of households on self-employment income exceeding
USD200,000, and married taxpayers filing separately on self-
employment income exceeding USD125,000. Wage income (see
above) is added to the amount of self-employment income when
determining the threshold.
Self-employed individuals must pay the entire tax (unlike an
employee who pays half the tax while the employer pays the other
half of the tax) but may deduct 50% (not including the extra 0.9%
Medicare tax) as a trade or business expense on their federal
income tax return. No tax is payable if net earnings for the year
are less than USD400. If a taxpayer has both wages subject to
FICA tax and income subject to SECA tax, the wage base subject
to FICA tax is used to reduce the income base subject to SECA
tax. SECA tax is computed on the individuals US income tax
return. Nonresident aliens are not subject to SECA tax unless
they are required to pay the tax under a totalization agreement
(see Social security tax).
Federal unemployment tax. Federal unemployment tax (FUTA) is
imposed on employers wage payments to employees. FUTA is
imposed on income from services performed within the United
States, regardless of the citizenship or residency of the employer
or employee. It is also imposed on wages for services performed
outside the United States for a US employer by US citizens. The
2016 tax rate is 6% on the first USD7,000 of wages of each
employee. Most states also have unemployment taxes that are
creditable against FUTA tax when paid. Self-employed individu-
als are not subject to FUTA tax.
D. Tax filing and payment procedures
The US system of tax administration is based on the principle of
self-assessment. US taxpayers must file tax returns annually with
the IRS and with the state and local tax authorities under whose
jurisdiction they live if those governments impose income or net
worth taxes.
On the federal return, taxpayers must report income, deductions
and exemptions and must compute the tax due. Taxes are generally
collected by employer withholding on wages and salaries and by
individual payment of estimated taxes on income not subject to
withholding. Normally, tax due in excess of amounts withheld
and payments of estimated tax must be paid with the return when
filed. The taxpayer may also claim a refund of an overpayment of
tax on the annual return. Substantial penalties and interest are
usually imposed on a taxpayer if a return is not filed on time or
if tax payments, including estimated payments, are not made by
the applicable due dates.
Tax returns may be selected for an audit at later dates by the IRS
or state auditors. Failure to provide adequate support for amounts
claimed as deductions on the return may result in the disallowance
of deductions and in a greater tax liability, on which interest and/
or penalties are levied from the original due date. In general,
taxpayers must maintain supporting documentation for at least
three years after a return is filed.
US citizens and resident aliens file Form 1040, US Individual
Income Tax Return, or one of the simplified forms, including
Form 1040A (for taxpayers with taxable income under
USD100,000 who do not itemize deductions) or Form 1040EZ
(for single or married filing jointly taxpayers with taxable
income under USD100,000, no itemized deductions, no adjust-
ments to income and no dependents). The due date for calendar-
year taxpayers is normally 15 April. Extensions to file tax returns
may be obtained by filing a request with the IRS. However, an
extension to file a return is not an extension to pay tax. To prevent
interest and penalties from being charged on unpaid tax, a calen-
dar-year taxpayer should pay any tax due by 15 April.
Nonresident aliens with reportable US gross income must gener-
ally file Form 1040NR, US Nonresident Alien Income Tax
Return. This return is required even if a taxpayer has effectively
connected income but no taxable income or if income is exempt
under a tax treaty. An exception from filing a return applies to a
nonresident alien with income effectively connected with a US
trade or business if the amount of the income is less than the
amount of one personal exemption (USD4,050 for 2016). In addi-
tion, nonresident aliens are not required to file Form 1040NR if
they are not engaged in a US trade or business during the tax year
and if any tax liability on US-source investment (portfolio)
income is satisfied by the 30% (or lower treaty rate) withholding
tax.
If required, Form 1040NR is due on 15 April for nonresident
aliens who earn wages subject to withholding; otherwise, the due
date is normally 15 June. Extensions to file the return (but not to
pay tax due) may be obtained by filing a request with the IRS.
An employer (US or foreign) is responsible for withholding US
income and social security taxes from nonresident alien employees.
For years in which a foreign national is both a resident alien and
a nonresident alien, two returns are generally prepared, attached
to each other, and filed simultaneously. One return reports income
and deductions for the residence period, and the other reports
income and deductions for the nonresident period. The income
from the nonresident period that is effectively connected with the
taxpayers US trade or business is combined with all income from
the resident period for computation of the tax on income subject
to graduated tax rates. The includible income and deductions are
different for both portions of a dual-status year. For a cash-basis
taxpayer, income is taxable when received. Therefore, foreign-
source income earned while a taxpayer was a nonresident alien is
taxable if it is received while the individual is a resident alien.
Conversely, non-effectively connected foreign source income
earned while a taxpayer was a resident alien is not taxed if it is
received when the taxpayer is a nonresident alien. As a result, to
avoid US tax on wages or a bonus for services performed outside
of the United States, a foreign national transferring to the United
States generally should receive the amount before arriving in this
country.
Two elections are available to married aliens that enable them to
file one tax return and qualify for the lower married filing joint
return tax rates. The first election may be made by an individual
who, at the close of the year, was a nonresident alien married to a
US citizen or resident. The second election is available to an indi-
vidual who, at the beginning of the year, was a nonresident alien
and who, at the close of the year, was a resident alien married to
a US citizen or resident. Under these elections, both spouses
must make the election to be entitled to file the joint return. Under
both elections, the nonresident alien spouse or part-year resident
spouse is treated as a US resident for the entire year.
In addition to the income tax return filing requirements discussed
above, the United States has information reporting rules, which
affect certain US residents and citizens, and certain nonresidents.
The rules cover interests and signature authority in foreign bank
and other financial accounts and assets, including foreign pen-
sion plans, foreign corporations, foreign trusts and foreign part-
nerships. The reporting rules are extremely complex, and penal-
ties (both civil and criminal) for failure to comply with the
reporting requirements can be significant.
E. Double tax relief and tax treaties

A foreign tax credit is the principal instrument used by US indi-
viduals to avoid being taxed twice on foreign-source income
once by a foreign government and again by the United States. In
general, the foreign tax credit permits a taxpayer to reduce US
tax by the amount of income tax paid to a foreign government,
subject to certain limitations.
The foreign tax credit is generally limited to the lesser of actual
foreign taxes paid or accrued and US tax payable on foreign-
source income. Separate limitations must be calculated for two
categories of income. These categories are passive category
income and general category income, which includes earnings
from personal services. Under the separate limitation rules,
foreign taxes paid on a particular category of income are avail-
able for credit against US tax imposed on foreign-source taxable
income only in that category. A foreign tax credit is allowed
against AMT liability (see Section A). Unused credits may be
carried back 1 year and carried forward 10 years.
Special rules apply to nonresident aliens who are residents of
countries that have income tax treaties with the United States. For
example, a treaty may reduce or eliminate the 30% tax rate appli-
cable to dividends, interest and royalties. Treaties may also limit
or eliminate the taxation of visitors who work in the United States
on short-term assignments or may provide exemption from tax
for teachers, professors, trainees, students and apprentices.
Even if a treaty provides for exemption from, or a reduction of, the
30% tax, this does not mean that the reduced rate applies auto-
matically. Nonresident aliens must first claim their treaty benefits.
For example, income tax withholding applies unless nonresident
alien employees file statements with their employers (foreign or
US) stating why they qualify for exemption from US tax under an
income tax treaty clause. Similarly, foreign students, teachers and
researchers must each complete Form 8233 and file it with their
US institution or employer. Treaty benefits for other types of
income, including royalties or interest, are obtained by filing the
appropriate W-8 form.
If applicable, the withholding agent must notify the nonresident
alien of the gross amounts paid and taxes withheld by 15 March
of the following year. This is done on Form 1042-S, Foreign
Persons US-Source Income Subject to Withholding. This form,
when attached to the nonresident aliens US income tax return
(Form 1040NR), provides proof of amounts withheld to the IRS.
The United States has entered into double tax treaties with the
following jurisdictions.
Australia Indonesia Portugal
Austria Ireland Romania
Bangladesh Israel Russian Federation
Barbados Italy Slovak Republic
Belgium Jamaica Slovenia
Bulgaria Japan South Africa
Canada Kazakhstan Spain
China Korea (South) Sri Lanka
Cyprus Latvia Sweden
Czech Republic Lithuania Switzerland
Denmark Luxembourg Thailand
Egypt Malta Trinidad
Estonia Mexico and Tobago
Finland Morocco Tunisia
France Netherlands Turkey
Germany New Zealand Ukraine
Greece Norway United Kingdom
Hungary Pakistan USSR*
Iceland Philippines Venezuela
India Poland
* The United States honors the USSR treaty with respect to Armenia, Azerbaijan,
Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan and Uzbekistan.
F. Non-immigrant visas
In general, foreign nationals who wish to be admitted to the
United States generally must first obtain authorization, and in
many instances, must obtain visas from a US consulate or
embassy. Visas are endorsed in passports and indicate that evi-
dence of a legally sufficient purpose for admission was presented
to a US consular official.
US immigration laws clearly distinguish between foreign nation-
als seeking temporary admission (non-immigrants) and those
intending to remain in the United States permanently (immi-
grants).
At ports of entry, foreign nationals are inspected or questioned by
Customs and Border Protection (CBP) officials to determine
their eligibility to enter the United States and the duration of their
initial periods of stay. Nearly all nationals admitted to the United
States for temporary periods receive instructions to access an
electronic Form I-94 online (https://i94.cbp.dhs.gov/I94/consent.
html). The I-94 record indicates both the individuals status in the
United States and the last date on which the individual may
remain in the United States. The online portal also allows indi-
viduals to check their travel history from and to the United
States, as captured by US authorities.
Different non-immigrant visas authorize a variety of activities in
the United States, including visiting, studying and working. The
categories are identified by combinations of letters and numbers
that authorize the particular visas, for example, B-1 visitors for
business or the work authorized L-1 intracompany transferee.
Every non-immigrant category permits a maximum length of
stay and a range of permissible activities. The most commonly
used categories of non-immigrant visas are described in detail
below.
Non-immigrant visas allow visa holders to be admitted to the
United States for a temporary period ranging from a few days to
several years, depending on the visa category. In general, holders
of non-immigrant visas must intend to remain in the United
States for a temporary period, not exceeding the validity of their
I-94 document. Without this intent, and with notable exceptions,
the applicant may be considered to be an intending immigrant,
and must apply for an immigrant visa (see Section G).
With some notable exceptions, while a non-immigrant is in the
United States, he or she may apply to change to another non-
immigrant category or to extend the length of the authorized stay.
However, most non-immigrant visa categories have maximum
stay limitations. Some categories of non-immigrants may also
become eligible for permanent residence or green card status
(see Section G).
Business- and work-related non-immigrant visas. A business that
requires the immediate services of a particular employee ordinar-
ily brings the employee to the United States first in a
non-immigrant category. If the employee wishes to remain in the
United States on a permanent basis, the immigrant application
process may begin while the employee is in the United States.
Several business-related non-immigrant visa categories are
described below.
Visitor for businessB-1. B-1 status is issued to people tempo-
rarily visiting the United States to engage in business on behalf
of foreign employers. B-1 holders may not be employed by or
receive salary from US employers, but, among other activities,
they may negotiate contracts, sell company products, develop
business leads and attend conferences and business meetings on
behalf of their foreign employers. A temporary business visitor
may accept reimbursement for incidental expenses such as travel
expenses. A B-1 visitor must retain unrelinquished domicile in
the foreign country to where he or she intends to return at the
conclusion of his or her temporary US stay.
In general, business visitors with B-1 visas may enter the United
States for periods of up to six months. However, B-1 status can
be granted for a shorter period, often not exceeding 30 days,
unless the business visitor can justify a longer period of admis-
sion. Applications for an extension beyond the initial entry period
can be sought from the United States Citizenship and Immigration
Service (USCIS).
Visa Waiver Program. The Visa Waiver Program (VWP) allows
nationals of the following jurisdictions to visit the United States
for business, as generally described above, or pleasure for up to
90 days without first obtaining B visas from US consular posts
overseas.
Andorra Greece Netherlands
Australia Hungary New Zealand
Austria Iceland Norway
Belgium Ireland Portugal
Brunei Italy San Marino
Darussalam Japan Singapore
Chile Korea (South) Slovak Republic
Czech Republic Latvia Slovenia
Denmark Liechtenstein Spain
Estonia Lithuania Sweden
Finland Luxembourg Switzerland
France Malta Taiwan
Germany Monaco United Kingdom
The above list is updated occasionally; readers should check
online with their local US consulate or embassy to confirm status
before traveling.
All VWP travelers are required to obtain a travel authorization
through the US Department of Homeland Securitys Electronic
System for Travel Authorization (ESTA) before traveling to the
United States. ESTA is an automated system used to determine
the eligibility of visitors to travel to the United States under the
VWP. ESTA is accessible online at https://esta.cbp.dhs.gov/esta/
for citizens of VWP countries.
Travelers are encouraged to apply as soon as travel is planned,
and it is strongly suggested that they apply no later than 72 hours
before travel to the United States. An approved ESTA travel
authorization is valid for multiple entries into the United States
and is generally valid, unless revoked, for up to two years or until
the travelers passport expires, whichever comes first. ESTA is
not a guarantee of admission to the United States at a port of
entry. ESTA approval only authorizes a traveler to board a carrier
for travel to the United States under the VWP. Readers should
review the US Department of State website for the most up-to-
date information about ESTA.
Visa waiver status is strictly limited; an extension of stay or a
change in status is not authorized. However, in an emergency
situation, a local USCIS office may grant a 30-day extension.
Business necessity is not generally considered an emergency
situation for these purposes. In addition, visa waiver applicants
who are found to be not admissible to the United States may be
expeditiously removed without trial, or right to confer with coun-
sel. At a minimum, machine-readable passports are required to
take advantage of the VWP. Nationals of the Czech Republic,
Estonia, Greece, Hungary, Korea (South), Latvia, Lithuania,
Malta and the Slovak Republic require passports with an inte-
grated chip containing the information from the data page.
Nationals of Taiwan require passports with an integrated chip
containing information from the passport data page and a nation-
al identification number. Please consult the US Department of
States website (https://travel.state.gov/content/visas/en/visit/
visa-waiver-program.html) for current passport requirements.
Under the Visa Waiver Program Improvement and Terrorist
Travel Prevention Act of 2015, travelers in the following catego-
ries are no longer eligible to travel or be admitted to the United
States under the VWP:
Nationals of VWP countries who have traveled to or been pres-
ent in Iran, Iraq, Sudan or Syria on or after 1 March 2011 (with
limited exceptions for travel for diplomatic or military purposes
in the service of a VWP country)
Nationals of VWP countries who are also nationals of Iran,
Iraq, Sudan or Syria
These individuals are still able to apply for a visa using the regu-
lar appointment process at a US embassy or consulate. For those
who require a US visa for urgent business, medical or humanitar-
ian travel to the United States, US embassies and consulates
stand ready to handle applications on an expedited basis.
Specialty occupationsH-1B. The H-1B category covers foreign
nationals employed in specialty occupations that require a theo-
retical and practical application of highly specialized knowledge,
as well as a bachelors degree or the equivalent in the field.
Before applying for an H-1B visa, an employer must file a labor
condition application with the Department of Labor (DOL) and
certify that, among other things, the foreign national will be paid
at least the prevailing wage for the proffered position. A pro-
spective employer must also provide notice of filing the applica-
tion to the bargaining representative (if any) of the companys
employees in the occupation for which foreign nationals are
sought. If no bargaining representative exists, the employer must
post notice of filing the application in two conspicuous locations
at the employment site for at least 10 consecutive business days.
In specified circumstances, extensions beyond the six-year limit
may be available. Each year, only 65,000 H-1Bs are made available.
In addition, regulations allow a further 20,000 H-1Bs to be issued
to persons having a masters or higher degree from qualifying US
post-secondary institutions. Readers should consult with the USCIS
to confirm that the H-1B cap has not been changed by Congress or
has not been reached for the current fiscal year. The USCIS
received nearly 233,000 H-1B petitions for the 2015 fiscal year,
which began on 1 October 2014. It uses a computer-generated ran-
dom selection process (lottery) to select the necessary amount of
petitions to meet the numerical limits.
Special, less onerous procedures and a specific quota apply to
and is set aside for citizens of Chile and Singapore, stemming
from free-trade agreements between those countries and the
United States.
If the employer meets the requirements for an extension, the
holder of H-1B status is entitled to a maximum six-year stay in
the United States.
Spouses and children of H-1B visa holders are eligible for H-4
status. Historically, such dependents were not authorized to work
in the United States. However, beginning 26 May 2015, certain
H-4 spouses may apply for employment authorization. H-4
spouses are eligible for employment authorization if the H-1B
employee is the beneficiary of an approved I-140 employment-
based petition (the I-140 is an employer-sponsored green card
[see Section G] petition that is filed with USCIS) or has been
granted H-1B status beyond the six-year H-1B maximum based
on a Program Electronic Review Management (PERM) labor
certification (see Section G) or an I-140 filed at least 365 days
before the six-year maximum period ends.
Specialty occupationsTraineesH-3. H-3 status may be issued
to foreign nationals to enter the United States for up to two years
to receive training and to develop skills that will be used in their
careers abroad.
Trainees must participate in structured training programs at US
companies. The programs must incorporate theoretical and prac-
tical instruction, and may not consist solely of on-the-job training.
The training must be unavailable in the foreign nationals home
country, and the skills acquired must apply to work outside the
United States.
For short-term training assignments (typically up to three months),
an H-3 visa may not be required (for someone who falls under the
VWP or who does not require a US visa), because in some instanc-
es the US immigration authorities recognize the B-1 in lieu of an
H-3 visa, which allows individuals to apply at a consulate (or in
the case of the VWP, at the port of entry) for admission for the
purpose of short-term training.
Spouses and unmarried children of H-3 visa holders are eligible
for H-4 status, but are not permitted to work in the United States.
Treaty traders and treaty investorsE-1 and E-2. Foreign nation-
als who are citizens of countries that have treaties of friendship,
commerce and navigation with the United States (see list below)
may be admitted to the United States to invest in businesses or to
engage in international trade under two categories of treaty-based
visas, called E visas. The most common application process for
these visas requires submission of documentation and attendance
at an interview at a US consulate abroad.
The E-1 treaty trader category permits foreign nationals to enter
the United States to engage in substantial trade in goods, services
or technology with treaty countries. The US enterprise for which
the foreign national works must be majority-owned by treaty-
country nationals (either companies or individuals). An E-1 treaty
trader must be employed in a supervisory or executive capacity
or in a capacity that requires skills essential to the company.
The E-2 treaty investor category enables investors who are nation-
als of treaty countries and who invest substantial amounts of
money in active US businesses to remain in the country to
develop, direct and oversee the businesses. Managers, executives
or employees with essential skills from treaty countries are also
admissible on E-2 visas.
For E visa purposes, the nationality of an enterprise is deter-
mined by the nationality of the entity owning at least 50% of the
enterprise.
Spouses and unmarried children under 21 years of age, regardless
of nationality, may receive derivative E visas to accompany the
principal visa holder. Spouses of E visa holders may apply for
employment authorization following his or her entry into the
United States. This document allows them to be employed with
any employer in the United States.
Agreements between the United States and the following juris-
dictions authorize treaty trader (E-1) and/or treaty investor (E-2)
classifications for nationals of these jurisdictions (for a current
list of treaty jurisdictions, please consult with the US Department
of State).
Albania (b) France Norway
Argentina Georgia (b) Oman
Armenia (b) Germany Pakistan
Australia Greece (a) Panama (b)
Austria Grenada (b) Paraguay
Azerbaijan (b) Honduras Philippines
Bahrain (b) Iran Poland
Bangladesh (b) Ireland Romania (b)
Belgium Israel (a) Senegal (b)
Bolivia Italy Serbia
Bosnia and Jamaica (b) Singapore
Herzegovina Japan Slovak Republic (b)
Brunei Jordan Slovenia
Darussalam (a) Kazakhstan (b) Spain
Bulgaria (b) Korea (South) Sri Lanka (b)
Cameroon (b) Kosovo Suriname
Canada Kyrgyzstan (b) Sweden
Chile Latvia Switzerland
Colombia Liberia Taiwan
Congo (b) Lithuania (b) Thailand
Costa Rica Luxembourg Togo
Croatia Macedonia Trinidad and
Czech Republic (b) Mexico Tobago (b)
Denmark Moldova (b) Tunisia (b)
Ecuador (b) Mongolia (b) Turkey
Egypt (b) Montenegro Ukraine (b)
Estonia Morocco (b) United Kingdom
Ethiopia Netherlands Yugoslavia (c)
Finland
(a) Limited to E-1 status.
(b) Limited to E-2 status.
(c) The United States takes the view that the treaty in force at the time of dissolu-
tion of the Socialist Federal Republic of Yugoslavia applies to its successors.
E-3 for Australians. The E-3 is a visa category available to

nationals of Australia (as well as their children and spouses),
limited to 10,500 per fiscal year. The E-3 status allows nationals
of Australia to be admitted into the United States to work tempo-
rarily in a specialty occupation for an initial period of 24
months. The application for an initial E-3 visa can be made
directly to a US consular mission abroad. The requirements for
qualification for the new E-3 visa are very similar to the require-
ments for the H-1B category. After arrival in the United States,
the spouse of an E-3 visa holder may apply directly to the USCIS
for employment authorization in the United States. The spouse
does not need to be a national of Australia to be eligible for
employment authorization.
Intracompany transfereesL-1. The L-1 visa allows foreign com-
panies with affiliated operations in the United States to transfer
needed personnel to their US facilities. L-1 visas may be issued
to foreign nationals who are employed abroad in executive or
managerial positions, or who hold positions involving special-
ized knowledge. These individuals must have been employed by
the related foreign entity for at least one continuous year during
the three years preceding admission to the United States. On
arrival in the United States, the beneficiary must assume an
executive, managerial or specialized knowledge position with the
US affiliate, parent, subsidiary or branch office.
Managers and executives may be issued and retain L-1A status for
up to seven years; L-1B specialized-knowledge personnel may
remain in the United States in that status for up to five years.
For start-up operations, L-1 visas are granted initially for a one-
year new office period. For visa extensions, start-up companies
must prove at the end of the year that they are doing business in
the United States and have made progress toward becoming viable
operating entities that need the services of managers, executives
or personnel with specialized knowledge. If, at the end of the first
year, the start-up company is unable to prove that this progress has
been made, it may be possible for the individual to receive an
extension of an additional year to continue to grow the business.
L-1B specialized knowledge visa holders may not work primarily
at a worksite other than that of the petitioning employer if either
of the following conditions will apply:
The work to be carried out will be controlled by a different
employer.
The offsite arrangement will provide labor for hire, rather than
service related to the specialized knowledge of the petitioning
employer.
The L-2 category is set aside for immediate family members
(spouse and child) of the L-1 beneficiary. An L-1 visa holders
spouse who holds L-2 status may apply for employment authori-
zation following his or her entry into the United States. This
document allows them to be employed with any employer in the
United States.
Over the past several years, USCIS service centers have shown a
clear trend toward higher scrutiny of L-1 petitions, resulting in
greatly increased rates for requests for additional evidence and
denials. This increased scrutiny has been applied across the board
with L-1 petitions, but has been most evident for petitions involv-
ing start-up companies and for personnel possessing specialized
knowledge.
Trade North American Trade Agreement ProfessionalsTN.
Canadian and Mexican citizens are eligible to apply for TN status
in the United States pursuant to the North American Free Trade
Agreement (NAFTA) of 1993 between Canada, Mexico, and the
United States. TN status provides a Canadian or Mexican foreign
national with temporary authorization to work for a US employer
at a professional level. The professional must be coming to the
United States to engage in one of the professions expressly enu-
merated in Appendix 1603.D.1 of the NAFTA and have the
appropriate degree and/or experience to perform the duties of the
profession. In addition, the work must be pre-arranged to be
performed for a US entity.
TN status may be granted for up to a three-year increment. No
maximum limit is imposed on the amount of time that a foreign
national may apply for and obtain TN status if the foreign nation-
al can demonstrate an intention to depart the United States before
the end of the authorized period of stay. Spouses and children of
a foreign national with TN status may qualify for derivative or
TD status in the United States. TD status allows a spouse or
child to attend school but not to work.
Canadians may apply for admission to the United States by pre-
senting the TN application materials in person at designated air
or land ports of entry. Before traveling to the port of entry,
Canadians have the option of applying for pre-approval by sub-
mitting a petition to the USCIS. Mexican nationals must apply
for a TN visa at the US consulate. As part of the consular applica-
tion process, Mexican citizens may present a Form I-797 (peti-
tion approval notice) from the USCIS; alternatively, Mexican
citizens may submit the TN supporting documents directly to the
US consulate for adjudication. Mexicans may then present the
visa at the port of entry to be admitted to the United States with
TN status. If a Mexican or Canadian TN applicant is already in
the United States, it is generally possible to apply with the USCIS
for change of status or extension of status.
Extraordinary abilityO-1. The O-1 visa category is for persons
of extraordinary ability in the sciences, arts, education, business
or athletics. Separate tests for demonstrating extraordinary abil-
ity exist for the following categories of individuals:
Foreign nationals in the motion picture and television industries
Other foreign nationals
Most foreign nationals must prove their claim of extraordinary
ability by providing evidence of sustained national or interna-
tional acclaim. They may enter the United States only to work in
their fields, and US immigration authorities must determine that
their entry substantially benefits the United States. O-1 petitions
are submitted to the USCIS for adjudication, and in some in-
stances must be accompanied by proof of consultation with ap-
propriate US labor unions (particularly those representing
individuals in the arts, entertainment or athletics).
The O-3 category is set aside for spouses and minor children of
O visa holders. No employment authorization is available to
holders of O-3 category visas.
Performing artists and athletesP. The P visa category is
reserved for certain performing artists and athletes. This visa
status contains the following subcategories:
P-1: internationally recognized entertainers and athletes
P-2: reciprocal exchange artists and entertainers
P-3: culturally unique artists and entertainers
P-4: family members of P-1 to P-3 visa holders
Employment visas as part of a course of study. Several non-
immigrant visa categories, which are outlined below, apply spe-
cifically to business trainees, researchers and students.
Exchange visitorsJ-1. Visas for exchange visitors (J-1 visas)
enable certain sponsoring institutions with exchange programs to
bring students, researchers, business and industrial trainees, and
others to the United States to participate in training programs
administered by the Department of States Bureau of Educational
and Cultural Affairs and the Office of Exchange Coordination
and Designation. The following J-1 categories, each having their
own specific rules, exist:
Post-secondary students
Secondary students
Short-term scholars
Summer work travel applicants
Interns
Trainees
Teachers
Professors and research scholars
Alien physicians
Au pairs
Other categories
Subject to the Department of States approval, a company may
establish its own training program or work with an organization
already recognized for sponsoring training programs. A trainee
may be engaged in any productive employment that provides
knowledge of specific firm practices in the United States or of
US business procedures in general. J-1 trainees are typically
authorized to remain in the United States for up to 18 months, but
the validity period for the other J-1 categories listed above may
differ. Some program participants are required to return to their
home country for two years before they become eligible to re-
enter the United States.
J-1 regulations focus on the distinction between work (that is,
gainful employment) and legitimate training. Prospective J-1
training sponsors must submit detailed descriptions of their train-
ing programs and of their goals and objectives.
Derivative J-2 visas may be issued to a spouse or unmarried child
under age 21, and J-2 spouses may apply for employment authori-
zation, which allows them to be employed with any US employer.
Academic studentsF. Students enrolled in academic institu-
tions may be allowed to work on campus during their studies and
during school vacations. Students also may be authorized to
engage in practical training at a US employer during their studies
or for one year after graduation. Students seeking post-graduation
practical training must obtain school approval and employment
authorization documents from the USCIS before they begin
working. Some F-1 holders may obtain a 17-month extension (up
to 29 months total) to their work authorization if they have com-
pleted a degree in science, technology, engineering or mathemat-
ics and if they have accepted employment with employers
enrolled in the USCISs E-Verify electronic employment verifi-
cation program. Students should consult with their Designated
School Officials and/or the USCIS before requesting an exten-
sion of their work authorization.
Non-academic studentsM. Students who have completed a
course of non-academic education may engage in practical train-
ing for up to six months, depending on the length of the educa-
tional program.
G. Immigrant visas
Permanent resident or immigrant visas, which are commonly
referred to as green cards, are issued to those intending to reside
permanently in the United States. Immigrant visa holders may live
and work in the United States with few restrictions. After a period
of physical presence and continuous residence of either three or
five years (depending on the basis on which the individual
obtained the green card), immigrant visa holders may, but are not
required to, apply for US citizenship.
Nine preference categories of immigrant visas are available to
foreign nationals. Four categories are based on family relation-
ships, and five are based on US employment (see details below).
Immigrant visas may also be obtained in accordance with the
diversity immigration visa program (visa lottery). Under this
program, 50,000 diversity visas are available annually to nation-
als of many, but not all, foreign countries. Such individuals may
qualify for diversity visas if they have completed at least a high
school education or its equivalent, or if they have worked at least
two years in occupations that require two or more years of train-
ing or experience. Each diversity visa applicant may file only one
application per year; multiple applications void all previous
applications. Foreign nationals are chosen at random and are
eligible to receive diversity visas only in the fiscal year in which
they are selected. In most cases, persons qualify on the basis of the
country in which the applicant was born. However, a person may
be able to qualify in two other ways. Under the first alternative,
if a person was born in a country whose natives are ineligible but
his or her spouse was born in a country whose natives are eligi-
ble, such person can claim the spouses country of birth, provided
both the applicant and spouse are issued visas and enter the
United States simultaneously. Under the second alternative, if a
person was born in a country whose natives are ineligible, but
neither of his or her parents was born there or resided there at the
time of his or her birth, such person may claim nativity in one of
the parents country of birth, provided the natives of such country
qualify to apply for the program.
Potential applicants should check the availability of diversity
visas with respect to their nationality before applying. For addi-
tional information, see https://travel.state.gov/content/visas/en/
immigrate/diversity-visa/entry.html. Currently, natives of the
following jurisdictions are not eligible to apply under the visa
lottery.
Bangladesh El Salvador Peru
Brazil Haiti Philippines
Canada India United Kingdom
China (mainland- Jamaica (except Northern
born) Korea (South) Ireland) and its
Colombia Mexico dependent
Dominican Nigeria territories
Republic Pakistan Vietnam
Ecuador
Persons born in the Hong Kong Special Administrative Region
(SAR), Macau SAR and Taiwan are eligible. Please consult with
the US Department of State for a current list and lottery instruc-
tions.
Categories of employment-based immigrant visas. The five cate-
gories of immigrant visas described below may allow foreign
nationals to immigrate to the United States on an employment-
related basis.
First preferencepriority workers. Foreign nationals who fall into
one of the following categories are classified as priority workers;
no labor certification (see Steps for obtaining employment-based
immigrant visas) is required for these workers:
Foreign nationals with extraordinary ability in the sciences,
arts, education, business or athletics who satisfy the following
conditions:
They have received sustained national or international
acclaim.
Their achievements are recognized through extensive docu-
mentation.
They intend to work in their area of ability.
Their contribution would substantially benefit the United
States in the future.
No offer of employment is required.
Professors and researchers who have received international
recognition as outstanding in a specific field who satisfy the
following conditions:
They have at least three years experience in teaching or
research in their field.
They have been offered tenure or tenure-track teaching or
research positions.
Multinational executives and managers who have been employ-
ed in executive or managerial capacities with their sponsoring
employers abroad for at least one year in the three years preceding
application, and who intend to continue to work for those
employers, subsidiaries or affiliates.
Second preferenceprofessionals holding advanced degrees and
aliens of exceptional ability. Foreign nationals holding advanced
degrees (or the equivalent) and aliens of exceptional ability may
be issued immigrant visas. Labor certifications are required for
these individuals. Individuals who fulfill the following certifica-
tions may qualify:
They have earned an advanced degree: masters degree or bach-
elors degree plus five years progressively more responsible
experience in the field.
They have exceptional ability in the sciences, arts or business.
Foreign nationals may also petition for a National Interest Waiver
(NIW) through the second preference category, in which they
request a waiver of the labor certification requirement. To quali-
fy, an individual must demonstrate exceptional ability and that
his or her permanent employment in the United States would
greatly benefit the national interest. The foreign national must
meet specified criteria demonstrating experience and excellence
in his or her field and the anticipated contribution to the United
States.
Third preferenceskilled workers, professionals holding basic
degrees and other workers. Individuals in certain categories may
be issued immigrant visas on job-related bases. Labor certifica-
tions are required for these individuals. The following are the
categories:
Skilled workers, not temporary or seasonal, with a minimum of
two years training or experience
Professionals with baccalaureate degrees
Other workers, including unskilled laborers, who are neither
temporary nor seasonal
Fourth preferencespecial immigrants. Foreign nationals classi-
fied as special immigrants (including religious workers, certain
medical doctors who have continuously practiced medicine in the
United States since 1978 and long-time US government workers
abroad), may be issued immigrant visas on job-related bases.
These individuals do not require labor certifications.
Fifth preferenceimmigrant investors. Foreign nationals investing
at least USD1 million in a US commercial enterprise that preserves
or provides full-time employment for at least 10 US workers may
be issued immigrant visas. Investment of as little as USD500,000
in targeted employment areas may qualify an investor for this sta-
tus. Although no offer of employment or labor certification is
required, strictly passive investments do not qualify. Approximately
10,000 visas are allocated to this category each year. The
immigrant visa quota mechanisms include protections to ensure
that immigrants from all countries have an opportunity to utilize
the category. Based on high demand from Mainland Chinese inves-
tors, at the time of writing, the EB-5 immigrant visa category has
retrogressed to 1 February 2014. As a result, the US immigration
authorities are not adjudicating filings made after that date.
Steps for obtaining employment-based immigrant visas. To obtain
permanent residence under an employment-based immigrant visa
is a two or three-step process. The following are the steps:
A labor certification application (for second and third prefer-
ence categories only)
An immigrant visa petition
An application for permanent residence status
Labor certification. Obtaining a labor certification approval is very
complex, and it is highly advisable to seek legal counsel.
For certain employment-based immigrant visa categories, labor
certification is the first step in the process of immigrating to the
United States. The employer submits an application to the
Department of Labor (DOL) to certify that an adequate test of the
labor market for qualified and available US workers has been
undertaken and that the immigrants employment will not
adversely affect wages or working conditions in the United
States. Labor certifications are issued in accordance with regula-
tions for the permanent employment of aliens in the United
States under the Program Electronic Review Management
(PERM) process.
To obtain labor certification, an employer must make good faith
efforts to recruit US workers for the position by following detailed
and specified recruitment procedures.
A labor certification is not issued if the labor market test results
in a US worker applicant who is qualified and available for the
position, even if the foreign national is more qualified than the
US worker applicant.
The employer must also offer a salary that is equal to or greater
than the prevailing wage paid to workers with comparable job
duties in the region that the position is being offered.
Schedule A: Precertified occupations. For certain positions requir-
ing labor certification, the labor market test is not required. The
DOL has established certain precertified positions and acknowl-
edges that hiring foreign nationals for these jobs does not adversely
affect US workers or wages. These jobs, referred to as Schedule A
positions, currently include the following two major groups of
occupations:
Group 1: Physical therapists and professional nurses
Group 2: Aliens of exceptional ability in the performing arts,
sciences and arts, including college and university teachers,
who are outstanding in their fields
Schedule B: Jobs with a surplus of US workers. In addition to the
list of precertified occupations, the DOL publishes a list of jobs
for which it has found that sufficient qualified US workers are
available and that hiring foreign nationals would adversely affect
working conditions. These jobs, or Schedule B positions, usually
require little education or experience and pay low wages. They
include hotel and motel cleaners, clerks and typists, short-order
cooks, taxicab drivers, household domestic workers and nurses
aides.
In many cases, labor certification may not be obtained for a
Schedule B position. However, it is possible to submit the infor-
mation normally required for labor certification and to request a
waiver of the Schedule B disqualification.
Multinational executives and managers: Exempt labor certification.
Foreign nationals applying for lawful permanent resident status
under the employment-based, first preference, multinational man-
ager or executive category do not require a labor certification.
Immigrant visa petition. After the labor certification petition is
approved (if required), the second step to obtain an immigrant
visa, and ultimately permanent residence, is filing an immigrant
visa petition. The prospective employer must petition the USCIS
to classify the foreign national under a recognized employment-
based preference classification. The employer must prove that the
foreign national is qualified for the position and that the employ-
er has the ability to pay the offered wage.
Application for permanent residence status. A foreign national
wishing to obtain permanent residence status must apply either
for an immigrant visa or for adjustment of status as a lawful
permanent resident within a preference classification.
Applications for adjustment of status to lawful permanent resi-
dence may be filed after the immigrant visa petition is approved
or, under certain circumstances, may be filed concurrently with
the immigrant visa petition. The principal foreign national and
his or her spouse and unmarried children younger than 21 years
of age must each file separate applications.
Alternatively, immigrant visas are issued overseas at US embas-
sies and consulates in the immigrants home countries. Applicants
not physically present in the United States must ordinarily remain
outside the country during the immigrant visa processing peri-
ods. In most cases, foreign nationals who have entered with visas
may apply for permanent residence in the United States by filing
an application for adjustment of status (see Adjustment of status
in the United States).
Processing overseas at a US consulate. The USCIS immigrant visa
petition approval is forwarded to the National Visa Center, which
collects biographic information, as well as certificates of birth,
marriage and divorce. Foreign nationals must also submit police
certificates from all places where they have resided for longer than
six months since the age of 16. After the National Visa Center has
collected the required information and documents, the application
is transmitted to the US consulate handling immigrant visas in the
country where the foreign national resides. The consulate then
provides instructions for a medical examination and in-person
interview.
Adjustment of status in the United States. Foreign nationals who
have maintained lawful non-immigrant status in the United States
may be allowed to apply for permanent residence through an
adjustment of status application. If a foreign national violates his
or her non-immigrant status, he or she may still be eligible to file
for an adjustment of status in the United States under certain
circumstances; however, that determination is made on an indi-
vidual basis.
After filing an adjustment of status application, an applicant
ordinarily remains in the United States. In many cases, departing
without prior USCIS permission cancels the application.
Consequently, the applicant should apply to the USCIS for an
advance parole. Advance parole grants permission to re-enter the
United States and prevents the USCIS from concluding that an
adjustment of status application has been abandoned. An excep-
tion also exists for travel in H or L status under certain circum-
stances. Advance parole applications should be filed well in
advance of the intended travel date.
Applicants for adjustment of status (including family members)
may apply for and obtain an Employment Authorization Document
permitting them to be employed by any employer pending the
finalization of the adjustment application.
Categories of family-based immigrant visas. Under existing rules,
many but not all family relationships may qualify an individual for
lawful permanent residence status. Qualifying relationships allow
the sponsorship of family members, including immediate relatives,
such as the following:
Spouses of US citizens
Minor unmarried children under age 21 of US citizens
Parents of US citizens who are at least age 21
In limited circumstances, spouses of deceased US citizens
In addition, family preference categories allow for the submis-
sion of an immigrant petition on behalf of certain groups.
However, these groups have historically experienced severe back-
logs as a result of annual demand exceeding annual quotas. The
following are the groups:
Unmarried sons or daughters of US citizens
Spouses or minor children of foreign nationals lawfully admit-
ted for permanent residence
Unmarried sons or daughters of foreign nationals lawfully
admitted for permanent residence
Married sons or daughters of US citizens
Brothers or sisters of US citizens who are at least age 21
Loss of permanent residence status. Foreign nationals may lose
their US permanent residence status in several ways. The most
common means is through abandonment, either by intent or by an
act deemed to indicate intent to abandon residence, such as con-
tinuous absence from the United States over a long period of time
or failure to file US federal income tax returns as a resident of
the United States. Permanent residents may also lose their status
if they commit a prohibited act, including conviction for certain
crimes. Permanent residence may also be rescinded if an applica-
tion is found to have been fraudulent.
Absence of less than six months from the United States by a perma-
nent resident usually does not constitute abandonment if the foreign
national returns to an unrelinquished US domicile. However, an
absence of one year or longer generally does constitute abandon-
ment, unless the individual has a re-entry permit. Consequently,
permanent residents who remain outside the United States for lon-
ger than six months should consider obtaining re-entry permits. A
re-entry permit may allow an otherwise eligible individual to re-
enter the United States after up to two years of continuous absence.
Obtaining a re-entry permit requires a statement that the foreign
national intends to leave the United States only temporarily. The
application for a re-entry permit may be denied if the permanent
resident has been living overseas with only occasional visits to the
United States, if he or she expresses no intent to return to a US
residence within a fixed period of time, or if he or she has no ties
to the United states, such as real or personal US property.
H. Family and personal considerations

Family members. The spouse and minor children of a
non-immigrant visa holder may accompany the non-immigrant to
the United States for the duration of the principal foreign nation-
als visa. Specific non-immigrant visas are issued to accompany-
ing family members (see Section F). Under many derivative visa
categories, spouses and children of the primary visa holder may
attend school during the familys stay in the United States with-
out a separate student visa. Spouses of L, E and some H-1B visa
holders may apply for permission to work in the United States,
and spouses of J visa holders are usually granted work authoriza-
tion in case of economic necessity. Spouses of holders of other
types of visas and dependent children seeking to work must
qualify independently for a working visa. Same-sex spouses are
eligible for dependent status and benefits if the marriage is
legally recognized in the jurisdiction in which the marriage
occurred. In addition, unmarried partners who are not otherwise
eligible for derivative visas as a principal applicants spouse (for
example, unmarried cohabiting partners and domestic partner-
ships) may be eligible for extended B-2 visitor for pleasure visas,
which allows them to accompany a non-immigrant to the United
States.
The spouse and children of a potential immigrant may file accom-
panying applications for permanent resident status. They are issued
permanent residence simultaneously if the principal foreign-
national immigrant is granted permanent residence and if they are
not individually ineligible to receive immigrant visas.
Change of address after entering the United States. All non-US
citizens remaining in the country for 30 days or more must report
any change in address within 10 days after the change by filing
Form AR-11 with the USCIS. The AR-11 form can be filed
online.
Appendix 1: State and local tax rates
The table below presents the maximum state and certain local
individual income tax rates for 2016. The rates are applied to
taxable income unless otherwise noted. Other local taxes may be
imposed.
State Highest marginal rate
Alabama 5%
Alaska None
Arizona 4.54%
Arkansas 7%
California 12.3%
Colorado 4.63%
Connecticut 6.99%
Delaware 6.6%
District of Columbia 8.95%
Florida None
Georgia 6%
Hawaii 8.25%
Idaho 7.4%
Illinois 3.75%
Indiana 3.3%
County tax 3.13% (highest rate)
Iowa 8.98%
Kansas 4.6%
Kentucky 6%
Louisiana 6%
Maine 7.15%
Maryland 5.75%
Baltimore 3.2%
Massachusetts 5.1%
Michigan 4.25%
Minnesota 9.85%
Mississippi 5%
Missouri 6%
Montana 6.9%
Nebraska 6.84%
Nevada None
New Hampshire 5% on interest and dividends
New Jersey 8.97%
New Mexico 4.9%
New York 8.82%
New York City 3.876%
North Carolina 5.75%
North Dakota 2.9%
Ohio 4.997%
Oklahoma 5.25%
Oregon 9.9%
Pennsylvania 3.07%
Philadelphia
Resident 3.9102% on compensation and
net profits
Nonresident 3.4828% on compensation and net profits
Rhode Island 5.99%
South Carolina 7%
South Dakota None
State Highest marginal rate
Tennessee 6% on interest and dividends
Texas None
Utah 5%
Vermont 8.95%
Virginia 5.75%
Washington None
West Virginia 6.5%
Wisconsin 7.65%
Wyoming None

EY - US Personal Tax and Immigration Guide PDF

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

EY - US Personal Tax and Immigration Guide PDF

Caricato da

Copyright:

Formati disponibili

1472

New York, New York GMT -5

Private Client Services contacts

C. Social security taxes

E. Double tax relief and tax treaties

E-3 for Australians. The E-3 is a visa category available to

H. Family and personal considerations

Potrebbero piacerti anche