Residency review
Green card and substantial presence tests.
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Non-resident aliens pay US tax only on certain US income, but the rules on what counts, how it is taxed and when a return is needed are detailed. We confirm your residency status, prepare Form 1040-NR, apply treaty benefits and help recover tax withheld in error, for clients in Pakistan, the Gulf and elsewhere.
US tax for a foreign national starts with status. A green card holder, or someone who meets the substantial presence test, is a resident taxed on worldwide income. Everyone else is a non-resident alien, taxed only on US-source income and income connected with a US business.
The substantial presence test counts days in the US: all days in the current year, one-third of the days in the previous year and one-sixth of the days in the year before that. If the total is at least 183, and you were present for at least 31 days in the current year, you are generally treated as resident. Exceptions exist: students, teachers and certain others can be exempt individuals, filing Form 8843, and someone with a closer connection to another country may avoid residency by filing Form 8840. Where both countries treat you as resident, the treaty tie-breaker rules apply, claimed on Form 8833.
Non-residents are taxed in two ways. Fixed or periodic income from US sources, such as dividends, royalties and some rents, is generally subject to 30% withholding, which a treaty may reduce. Income effectively connected with a US trade or business is taxed at graduated rates on a net basis, after deductions, and reported on Form 1040-NR. Rental income from US property can be elected to be taxed as effectively connected income, so expenses are deducted. When a foreign person sells US real property, FIRPTA generally requires the buyer to withhold 15% of the amount realised.
Form 1040-NR is due on 15 April if you received wages subject to US withholding, otherwise on 15 June. Freelancers in Pakistan working for US clients often have no US tax at all, because services performed outside the US are generally foreign-source income; the right step is usually a correct Form W-8BEN given to the client or platform, not a US return. Where tax has been withheld wrongly, Form 1040-NR may be the way to claim it back.
US citizens and green card holders file differently; see US individual tax returns. For US entities owned by non-residents, see US LLC tax services, and for ITINs, US tax registration and compliance.
A fixed fee per return or per review.
Green card and substantial presence tests.
Non-resident federal return.
Reduced rates and Form 8833.
Tax withheld in error recovered.
Net election and expenses.
Sales of US real property.
Foreign status for payers and platforms.
Exempt individuals and closer connection.
These are common for people outside the US.
Filing as resident or non-resident in error.
We apply the tests.No treaty claim made.
We claim treaty rates.Freelancer income taxed in the US.
We prepare the right form.Net election not made.
We elect and deduct expenses.Withholding above the actual tax.
We file to recover it.15 April or 15 June.
We confirm your date.Entirely remote, wherever you are.
Status, income and withholding.
Agreed per return.
1042-S, travel days and statements.
1040-NR and treaty forms.
Return filed, refund tracked.
Paid by US clients and platforms.
Rental income and sales.
US dividends and securities.
Working days in the US.
F, J and similar visas.
With effectively connected income.
US non-resident filings from a team that knows the Pakistani side.
US–Pakistan treaty applied.
ACCA and ICAP Chartered Accountant qualifications.
US and Pakistan filings aligned.
W-8BEN and platform issues.
Easy contact from anywhere.
Agreed per return.
Have a question that is not here? Send it to us on WhatsApp and we will reply the same day.
Tell us what US income you have and where you live. We will confirm your status and filings and quote a fixed fee.
Book your free consultationThis page is general information about our services, not tax, legal or financial advice for your specific situation. Laws, rates and deadlines change with each Finance Act and official notification.