how does taxation differ for non resident and resident aliens 
a resident alien can use foreign tax credits but a non resident cannot a resident alien is generally subject to the same taxes as a u s citizen but a non resident alien pays tax only on domestic income that s generated within the u s not including capital gains resident aliens are required to report worldwide income from sources both within and outside the united states income is reported using form 1040 non resident aliens report domestic income using form 1040nr 8the bottom linea resident alien is a united states resident but not an american citizen resident aliens are lawfully recorded residents who hold green cards or who have passed a substantial presence test numerous interlocking residency rules apply to the status and some individuals are exempt resident aliens are generally subject to the same taxes as u s citizens but the irs provides them with their own tax return speak with a government representative or an attorney if you re unsure of your status or you re considering hiring an immigrant 