Overview of US Taxes

Tax Nexi

1. The four basic concepts determining an individual’s liability to US taxation are:
1.1 US Citizenship
1.2 Residence
1.3 Domicile and
1.4 Situs of assets

Alone in the world, the US taxes its citizens globally irrespective of residence, domicile or situs of assets for purposes of US federal income, gift, estate and generation skipping transfer taxes. US citizens include all (non diplomatic) persons born in the US plus generally all persons born abroad to at least one US parent.

The tax nexus criteria of residence, domicile and situs of assets therefore generally apply only to foreign nationals - the principal exception being that US persons resident abroad qualify for a $100,000 foreign earned income exclusion.

Here you can download free IRS forms, regulations, and current developments in evolving areas like FATCA and a host of others on the Much Improved IRS Website. Click on the IRS Image to access the site.

When will a US State tax a non grantor trust

Click here for a pdf showing each State

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