Alien US tax guide

Getting The Best US Tax refund depends on what you know and who you hire!
Welcome to 1040NR Tax Returns’ online tutorial and information archive for foreign nationals that work, have worked or will work in the U.S. and more specifically nonresident aliens who have worked in the United States under a J1 or F1 visa.
Our site dedicates itself primarily to getting the maximum tax back or tax refund for foreign nationals who work in North America specially those who only worked on a temporary basis
Over the next months we will be building and offering you the non-resident information to clearly establish your status and the steps necessary to follow for filing your U.S. tax return, and getting the biggest tax back payout possible.
Introduction

The key to getting the best possible tax rebate is understanding US tax returns and how they work for people from other countries. as with anything in life the more you know the better you do. And US Taxes is no exception in fact when it comes to taxes it’s the rule.

In the world of taxes; someone who is not a US citizen working or living in the US is considered an alien Aliens are classified as nonresident aliens and resident aliens. This publication will help you determine your status and give you information you will need to file your US tax return. United states citizens as well as resident aliens usually get taxed on their worldwide income.. Nonresident aliens are taxed only on their income from sources within the United States and on certain income connected with the conduct of a trade or business in the United States.The information in this publication is not as comprehensive for Resident Alien as it is for nonresident aliens. Resident aliens are generally treated the same as US citizens and can find more information in other IRS publications.
What’s New for 2009

IRA deduction expanded.
You may be able to take an IRA deduction if you were covered by a retirement plan and your 2009 modified adjusted gross income (AGI) is less than $65,000 ($109,000 if married filing jointly or a qualifying widow(er)).

Earning work pay credit. If you are a resident alien who had earned income in 2009, you may be eligible for a refundable tax credit.

The lesser of these credits will apply

1. in 2009 6.2% out of your earned income, or
2. 2. $400 ($800 in the case of a joint return).

For details, see Schedule M (Form 1040A or 1040) and its instructions.

Government retiree credit. You may be able to take this credit if you received a pension or annuity payment in 2009 for service performed for the US government or any state or local government (or any agency of one or more of these) and this service performed was not credited to or by social security For details, see Schedule M (Form 1040A or 1040).

Portion of unemployment compensation not taxable. The For 2009 the first $2,400 of unemployment compensation is exempt from federal income tax Any unemployment compensation over $2,400 is taxable.
Motor vehicle tax deduction. After February 16th 2009 resident aliens could possibly deduct state or local sales and excise taxes paid new cars, light trucks, motor homes, and motorcycles again after February 16th 2009, as an itemized deduction For details, see the instructions for Schedule A (Form 1040).

Hope education credit. Hope credit's new increased maximum is now $2,500 Part of the credit is now refundable. See Publication 970, Tax Benefits for Education.

First-time homebuyer credit. This credit has been extended for purchases of a main home in the United States after 2008 and before May 1, 2010 (before July 1, 2010, if you entered into a written binding contract before May 1, 2010). The credit is generally 10% of the purchase price of the home but is limited to $8,000 ($4,000 if married filing separately).
Also, the credit has been modified to allow smaller credit (limited to $6,500, $3,250 if married filing separately) if you (and your spouse if married) were proprietor and occupied the same principal home for any time with the condition of it being for 5 consecutive years during the 8-year period finalizing on the date you purchased your new main home in the US. For this credit, the replacement home must be purchased after November 6, 2009, and before May 1, 2010 (before July 1, 2010, if you entered into a written binding contract before May 1, 2010).
You can choose to claim the credit on your 2009 return for a home you bought in 2010 that qualifies for the credit.
See Form (Rev. December 2009) for more information.

Exemptions extended for specific distributions from mutual funds The exemption from the 30% tax on certain interest-related dividends and short-term capital gain dividends received from a mutual fund or other regulated investment company has been extended 2 years. It now applies to dividends for tax years of the company beginning before 2010. See Dividend Income in chapter 3.
That ends this first installation of great US tax information so you can learn and get the best tax refund possible on your 1040NR remember visit our site to get more information or to begin the process of getting your maximum tax refund.