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:
“The belief in a supernatural source of evil is not necessary; men alone are quite capable of every wickedness.”
—Joseph Conrad (1857–1924)
“The source of poetry that
seeing the clock stopped, says,
The clock has stopped
that ticked yesterday so well?”
—William Carlos Williams (1883–1963)
“Strictly speaking, every citizen above a certain level of income is guilty of some offense.”
—Max Frisch (1911–1991)