Generally, a foreign individual who is or becomes a US Person for US tax purposes must file an individual tax return, such as Form 1040 “U.S. Individual Income Tax Return” with the Internal Revenue Service (IRS). He or she will report and be taxed on worldwide income, after allowable exclusions, exemptions and deductions. Tax rates which presently apply to individuals range from 10% to 35% on ordinary income, such as wages and interest, and 15% on qualified dividends and long-term capital gains. Credits against US tax may be available for foreign tax paid on foreign source income and gain.
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