Moving to a foreign country is always stressful. There is always so much to just DO – everything is new – new job, new home, new friends, new transport experiences, new language, new food – well, in fact, new almost everything!
One of the more challenging tasks for individuals who move to the US is learning how to deal with the Internal Revenue Service, or IRS, and figuring out how US taxes for foreigners work. To make it worse, almost everyone you ask about will be clueless on how to help you. That’s because the rules around US taxes for foreigners are different from those for everyone else. Even if you have been in the US for some time, you will find that there are tax issues that affect you that do not impact your American friends. You will soon find that the phrase “A square peg in a round hole” could have been coined for you.
We all like to put off challenging tasks, but it is one matter that you should address promptly. Locate someone who understands US taxes for foreigners so that you can make sure not to miss important deadlines. Be assured that it is always better to be prepared and proactive than to leave things to the last minute.
Depending on your immigration status, you may find that you need to obtain an individual taxpayer identification number (ITIN) for a family member. That procedure in itself is highly inconvenient nowadays, and may involve parting with your important documentation (e.g., passport), or locating a Certified Acceptance Agent so that you don’t have to part with your documents. In most cases, you will apply at the point of preparing and submitting your tax return, but there are some limited circumstances where you might need to do it sooner.
At least for the early part of your stay in the US, you may find that there exist tax treaties between your country and the US. These can save you money, so it is always worth it to check this out.
If the purpose of your move to the US is to study or work at a university, you may find that your institution provides access to professional advice on a limited basis through tax clinics or something similar. You will want to contact your International Center to ask about these. Some businesses may also provide similar resources.
I hope you will find this blog useful, as it is written just for YOU, by someone who was once a square peg in a round hole!