IRS Publication 519 – the official IRS resource for nonresident aliens, resident aliens, international students, teachers, researchers, and anyone who is not a U.S. citizen but has U.S. tax obligations.
This comprehensive guide explains how to determine your tax residency status, how your income is taxed, filing requirements, tax treaty benefits, and much more. The latest edition (Publication 519 for 2024, revised March 2025) is available for free download here:
Download IRS Publication 519 PDF
Who Should Read IRS Publication 519?
If you are a non-U.S. citizen (alien) and you:
- Work in the U.S. on a visa (H-1B, L-1, O-1, etc.)
- Are an international student, scholar, or researcher (F, J, M, Q visas)
- Own U.S. rental property or investments
- Recently moved to or left the U.S.
Then Pub 519 is the primary IRS guide you need. It clarifies whether you are taxed like a U.S. citizen (worldwide income) or only on U.S.-source income.
Resident Alien vs. Nonresident Alien: The Most Important Decision
Chapter 1 of Publication 519 is the most critical part.
You are a resident alien (taxed on worldwide income) if you meet either:
- Green Card Test — You are a lawful permanent resident (green card holder) at any time during the year.
- Substantial Presence Test — You were physically present in the U.S. for:
- At least 31 days in the current year (2024), and
- 183 days during the 3-year period (2024 + ⅓ of 2023 + ⅙ of 2022).
Exempt individuals (students, teachers, researchers, diplomats) often do not count days toward the substantial presence test if they file Form 8843.
Closer Connection Exception — You can avoid resident status by proving a stronger connection to a foreign country (use Form 8840).
Dual-Status Aliens — Common for people who arrive or depart mid-year (e.g., first-year students or H-1B holders).
How Income Is Taxed: Resident vs Nonresident?
| Category | Resident Alien | Nonresident Alien (Form 1040-NR) |
|---|---|---|
| Taxed on | Worldwide income | U.S.-source + Effectively Connected Income (ECI) |
| Rate on ECI | Graduated rates (same as citizens) | Graduated rates |
| FDAP Income (interest, dividends, royalties) | Graduated rates | Flat 30% (or lower treaty rate) |
| Standard Deduction | Yes | No (except Indian treaty students: $14,600 in 2024) |
| Foreign Tax Credit | Yes | Limited |
Effectively Connected Income (ECI) is taxed at graduated rates after deductions. Fixed, Determinable, Annual, or Periodical (FDAP) income is usually subject to 30% withholding.
Key Filing Requirements
- Resident Aliens → File Form 1040 or 1040-SR (due April 15, 2025).
- Nonresident Aliens → File Form 1040-NR (due April 15 or June 15, 2025, depending on whether you had wages).
- Dual-Status → File a combination return (Form 1040 with attached 1040-NR statement).
Withholding & Estimated Tax
Nonresidents use Form W-8BEN (or W-8ECI). Scholarships and fellowships often have 14% or 30% withholding.
Tax Treaty Benefits (Chapter 9)
The U.S. has income tax treaties with over 60 countries. Pub 519 provides detailed tables for:
- Students and trainees (Appendix A)
- Teachers and researchers (Appendix B)
- Reduced rates on dividends, interest, royalties, and capital gains
You must generally report treaty benefits on Form 8833.
Recent Treaty Updates (2024–2025):
- Russia and Belarus treaty suspensions → 30% statutory withholding now applies.
- Hungary treaty terminated (effective 2024).
Special Situations Covered
- International students and scholars (very detailed rules)
- Employees of foreign governments and international organizations
- Departing aliens (Sailing or Departure Permit – Form 1040-C or 2063)
- Expatriation tax (covered expatriates)
- U.S. real property sales (FIRPTA withholding)
What’s New in the 2024 Edition?
- New checkbox on Form 1040 to treat a nonresident spouse as a U.S. resident.
- Foreign earned income exclusion increased to $126,500.
- Standard deduction for U.S.-India treaty students: $14,600 (single).
- Social Security wage base: $168,600.
- Updates to partnership withholding rules (Section 1446(f)).
Final Recommendations
- Download the latest PDF directly from IRS.gov (link above).
- Carefully review Chapter 1 to determine your status — this single decision changes everything.
- Use tax treaties aggressively if eligible.
- Consult a qualified U.S. tax professional or CPA experienced with cross-border taxation, especially if you have dual-status years, rental income, or stock options.
Need visuals?
(Here’s the official cover of IRS Publication 519 and Form 1040-NR for reference.)
Would you like me to create a downloadable checklist, substantial presence test calculator, or a comparison table for a specific visa type (F-1, H-1B, L-1, etc.)? Just let me know!