US source income typically includes compensation for services, interest, dividends, rents and royalties from US sources. Basic US sourcing rules are as follows:
| Type of Income: | US Source if: |
| Salaries, wages, other compensation | Services are performed in the US |
| Business income: Personal Services Sale of inventory – purchased Sale of inventory – produced |
Services are performed in the US Sale takes place in US Production allocated to US |
| Dividends | The payer corporation is formed in the US |
| Interest | The payer of the interest is a resident of the US |
| Rent | The rented property is located in the US |
| Royalties – patents, copyrights, etc. | The property subject to the royalty is used in the US |
| Royalties – Natural resources | The property subject to the royalty is located in the US |
| Sale of Real Property | The real property is located in the US |
| Sale of Personal Property | The seller’s tax home is in the US |
| Pensions | The services that earned the pension were performed in the US |
