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Who is a "Nonresident Alien and "Resident Alien" for tax purposes?

If a foreign individual does not meet either the Green Card or Substantial Presence Test, then that individual is classified as a Nonresident Alien. A Nonresident Alien is taxed differently from a U.S. citizen. A Resident Alien also known as a "Permanent Resident" has been awarded a Permanent Authorization to live and work in the US. Permanent Residents are subject to all income tax reporting and taxation.