What you need to know about U.S. Taxation


Living in the United States may appear as a dream come true to numerous foreigners. And it really is!

However, if you choose to become a U.S. resident/U.S. citizen, you have to be aware of your duties and obligations.

Declaring taxes is one of the major duties of a US citizen/US resident.

Your immigration status dictates the major difference between a resident tax payer and a non-resident tax payer. A qualified immigration and business transaction lawyer will advise on the most appropriate tax structure, based on your current immigration status. A Pre-immigration tax plan is good for everyone and every immigrant should be aware, prior to the change of their status, to plan and organize their tax structure.

Once you become a resident taxpayer, you are required to declare your worldwide income.

If you are unsure about your tax paying duties & tax structure as a US resident/citizen, contact an experienced immigration and tax lawyer. Paying taxes is an integral part of the life of a US resident/citizen. Robert Kravitz, an immigration attorney and a partner at the Miami-based Law Office of Kravitz & Guerra, advises that failure to fulfil your tax obligations may result in threatening your legal status in the United States.

Filing Taxes as a US Tax Resident

As a U.S. tax resident, you are required to file appropriate forms and declare/ pay any due taxes by April 15 of the year following the reporting year. If you don’t have your complete information by April 15 to file your tax return, you can apply to obtain an automatic extension of six months (to October 15) to file your tax return

A non-US resident for tax purpose should never pay US taxes.

A non-US tax payer should avoid paying US taxes. It is important that a foreigner or a non-US tax payer consult the right lawyer about their investment plans to avoid any personal tax liability. Investments in the US with the wrong structure might cause 30 to 40% increase in taxes. Contact an experienced lawyer for clarification of your tax situation.


Employee compensation is an example of trade or business income.  Trade/business income requires a certain level of active participation

Because a Non-resident tax payer with a valid immigration work visa receives US income, he/she must declare and pay taxes on the US income received.   Consult an experienced immigration and tax lawyer for assistance and advice. The wrong lawyer may create an inefficient tax structure that may result in unnecessary taxes.


Foreigners who purchase a real estate property in the United Stated are subject to FIRPTA (Foreign Investment in Real Property Tax Act). FIRPTA is equal to 15% of the property purchase value. Foreign nationals are advised to contact a qualified immigration and real estate attorney who will advise them on how to minimize or legally avoid the FIRPTA tax burden.

There are exceptions and exemptions from FIRPTA withholdings that may pertain to each individual case. Contact our experienced immigration and real estate attorneys for an evaluation of your case.

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