Source of Income
United States persons (including citizens, residents, and U.S. corporations) are generally subject to U.S. federal income tax on their worldwide income. Foreign persons (i.e., persons who are not U.S. persons) are subject to U.S. federal income tax only on income from a U.S. business and certain income from United States sources. Source of income is determined based on the type of income. The source of compensation income is the place where the services giving rise to the income were performed. The source of certain income, such as dividends and interest, is based on location of the residence of the payor. The source of income from property is based on the location where the property is used. Significant additional rules apply.
Read more about this topic: Gross Income
Famous quotes containing the words source of, source and/or income:
“Because relationships are a primary source of self-esteem for girls and women, daughters need to know they will not lose our love if they speak up for what they want to tell us how they feel about things. . . . Teaching girls to make specific requests, rather than being indirect and agreeable, will help them avoid the pitfalls of having to be manipulative and calculating to get what they want.”
—Jeanne Elium (20th century)
“Man is a stream whose source is hidden. Our being is descending into us from we know not whence. The most exact calculator has no prescience that somewhat incalculable may not balk the very next moment. I am constrained every moment to acknowledge a higher origin for events than the will I call mine.”
—Ralph Waldo Emerson (1803–1882)
“I know everybody’s income and what everybody earns,
And I carefully compare it with the income-tax returns;”
—Sir William Schwenck Gilbert (1836–1911)