How do governments tax the income of non-residents?

In the United States, the federal government and the state of Nevada both tax non-residents on income earned within their jurisdiction. The federal government requires all non-residents to pay income tax on any income earned from U.S. sources, regardless of where the non-resident lives. Certain types of income are exempt from taxation, such as interest from U.S. government savings bonds, as well as certain types of payments made for international services not related to U.S. business. State laws in Nevada vary, but generally all non-resident income from sources within the state is subject to taxation. The taxes that are required depend upon the type of non-resident filing status and the type of income. Non-residents who are actively engaged in a business in the state of Nevada or filing as a part-year resident may be required to pay state income taxes on all income earned while in the state. Passive income, such as capital gains from investments in Nevada, must also be reported. Non-residents of Nevada should be sure to consult with a qualified tax advisor or accountant to determine their filing status and potential tax liabilities. Additionally, taxpayers should be mindful of the tax treaties and agreements between the United States and other countries, as these may impact taxation of income earned from certain sources.

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How do governments tax the income of non-residents?

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