U.S. Basis of Taxation

Similar to Canadian Taxation System, the United States taxes residents on worldwide income and non-residents only on U.S. source income. However, the residency determination between Canada and the U.S. is completely different.

Under the U.S. Tax Law, there are following types of individual taxpayers.

• A U.S. Citizen or green card holder – An person who is a U.S. Citizen or green card holder is considered to be a resident for tax purposes regardless of whether he or she is not actually residing in the United States. 
• Foreign Alien – Depending on the facts and circumstances, a foreign national will either be a non-resident alien, dual status or full year resident alien.