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 income, source of, source and/or income:
“Please don’t look at me as if you had a source of income other than your salary.”
—Joseph L. Mankiewicz, U.S. director, screenwriter. Joseph L. Mankiewicz. Countess (Danielle Darrieux)
“A comfortable house is a great source of happiness. It ranks immediately after health and a good conscience.”
—Sydney Smith (1771–1845)
“It is thus tolerance that is the source of peace, and intolerance that is the source of disorder and squabbling.”
—Pierre Bayle (1647–1706)
“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)