Resident Aliens for Tax Purposes

Federal

Resident aliens for tax purposes follow the same guidelines and use the same forms as U.S. citizens.

  • You may not be required to file any tax forms at all if your gross income is below the minimums found in the IRS Filing Requirements Chart for Most Taxpayers.
  • Resident aliens for tax purposes file IRS Form 1040 (or Form 1040-SR for those age 65 or older). You may be able to e-file your tax return. This year, 2023 tax forms must be postmarked or e-filed no later than April 15, 2024.
  • You are not required to file Form 8843
  • You must report your worldwide income, not just your U.S. income
  • Your bank interest is considered taxable income

State

The guidelines at the Michigan Department of Treasury web site state that you are required to file a State of Michigan tax form if you file a federal return or your income exceeds your Michigan exemption allowance ($5,400 per person). Even if you are not required to file a State of Michigan tax form, you may want to do so anyway if too much tax was withheld from your income and you are due a refund. If you do not file a Michigan tax form, the State of Michigan will keep your refund.

Individuals who are considered residents for federal tax purposes may still be considered nonresidents by the State of Michigan. If you fall into this category you then must file a MI 1040 plus a MI Schedule NR and a MI Schedule 1. For more information about determining your State of Michigan tax residency status and for information about filing as a Michigan non-resident, please review these handouts from the March 2024 Michigan Tax Webinar. 

March 2024 Handouts

Tax Treaties with Other Countries

Under certain limited circumstances, international students and scholars from tax treaty countries may be eligible to claim treaty benefits even though they are considered resident aliens for U.S. tax purposes. The Payroll Office website has tax treaty information which lists the tax treaty country, any limits on amount or time, the tax treaty, article number and any special restrictions. If you are a resident alien for U.S. tax purposes AND are eligible to claim an income tax treaty exemption, follow the steps below. Please also review the “Resources” section below to learn when resident aliens for U.S. tax purposes can claim tax treaty benefits.

  1. Go to www.irs.gov to obtain Form 1040 (and its instructions), Schedule 1, and Schedule OI of Form 1040-NR.  Please note that depending on your situation, there may be additional Schedules that also apply to you;
  2. Complete all of the income lines on Form 1040, as well as any other Schedules, as applicable to you;
  3. On Schedule 1, Line 8z (Other Income), write "U.S.-{country} tax treaty, Article {article number}”.  Also on Schedule 1, Line 8z, enter the total amount you wish to claim as a tax treaty exemption as a negative number. Then, in effect, the amount of tax treaty exemption will be subtracted when you enter a total on Schedule 1, Line 9. Complete Line 10 as indicated on Schedule 1;
  4. Enter the amount from Schedule 1, Line 10, onto your Form 1040, page 1, Line 8;
  5. On Schedule OI, complete your name and Social Security Number, write "Resident Alien with Tax Treaty Exemption” across the top of the page, and complete ONLY Section L;
  6. Attach Schedule 1 and Schedule OI to the back of your Form 1040. If you received a Form 1042-S or Form W-2, attach the applicable copies to the front, bottom section of Form 1040;
  7. Regardless of where you live, MAIL your Form 1040, Schedules and other applicable documents to:
    IF NO Additional Tax is Due: OR IF Additional Tax is Due:
    Department of the Treasury
    Austin, TX 73301-0215
    (no street address is needed)    		 Internal Revenue Service
    P.O. Box 1303
    Charlotte, NC 28201-1303

Resources:

Internet Resources: Claiming treaty benefits as a tax resident

 

Reviewed and updated April, 2024

The information contained in this web site is not a substitute for advice obtained from the Internal Revenue Service or a qualified tax professional.