U.S. Taxation of VISA Holders: H1-B, F-1/J-1, B-1/B-2, TN, Green Card, and Others

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

Conducted on Tuesday, October 26, 2021

Recorded event now available

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Course Materials

This course will address U.S. nonresident taxation by visa type. Our authoritative panel of immigration and taxation experts will identify common visa categories and explain when a visa holder is subject to U.S. taxation of income, what treaty and other benefits may be available to mitigate taxation, and when U.S. earnings are subject to social security tax.

Description

There are many visas issued to nonresidents who travel to the United States for work or pleasure, along with permanent residence, better known as the “green card.” Each visa type and the nature of the traveler's stay affect the traveler's U.S. tax liability.

U.S. Visa holders will need to determine if they are treated as a resident or a nonresident in order to properly file their tax return. Some visas provide special exemptions to residency, which is typically determined using the Substantial Presence Test. Beyond these exemptions there are elections and positions that can be taken by the individual to adjust their residency status. This can complicate employer reporting and withholding requirements which vary between residents and nonresidents.

Providing additional relief and further complicating the determination are treaty benefits. U.S. tax treaties with other countries contain provisions to eliminate double income taxation and often include totalization agreements to avoid double taxation of Social Security. Certain visa types are exempt from Social Security/Medicare taxes. Visa holders who are subject to Social Security/Medicare may benefit from social tax agreements that the U.S. has entered into. These “totalization agreements” are intended to avoid the double taxation of social security taxes. Tax practitioners working with nonresidents in the U.S. need to understand the U.S. tax implications by visa type and maximize applicable tax benefits.

Listen as our panel of international taxation experts explains the different classes of visas and each classification's income and withholding tax implications.

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Outline

  1. Common visa types
    1. H-1B: highly qualified professionals
    2. F-1/J-1: students and exchange students
    3. B-1/B-2: business and tourist travelers
    4. TN: skilled workers from Canada and Mexico
    5. Green card
    6. L-1 Intracompany Transferee
  2. Income Taxes
    1. Substantial presence test
    2. Visa based exemptions
    3. Tax treaties
    4. Employer reporting obligations
  3. Social Security/Medicare Taxes
    1. Exemption
    2. Totalization Agreements
  4. Other considerations

Benefits

The panel will review these and other critical issues:

  • Identifying specific visa types and their relative U.S. reporting and tax obligations
  • How to determine specific treaty benefits available to neutralize U.S. taxation
  • Which visa types are exempt from Social Security withholding and steps to obtain the exemption
  • When is a nonresident required to file a U.S. income tax return?
  • Employer obligations for reporting and withholding

Faculty

Klug, Noah
Noah E. Klug
Managing Shareholder
Klug Law Firm

Mr. Klug is the Managing Shareholder of Klug Law Firm, a business immigration law firm headquartered in New York City....  |  Read More

Neely, John
John Neely
Managing Director
Grant Thornton

Mr. Neely is a leader of the Global Mobility practice at Grant Thornton. He has experience advising multi-national...  |  Read More

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