Best answer: What is foreign or U S possession?

What is considered a US possession?

U.S. territories, or possessions, are islands under the jurisdiction of the United States which are not States of the United States. … Those that have their own governments and their own tax systems (Puerto Rico, U.S. Virgin Islands, Guam, American Samoa, and The Commonwealth of the Northern Mariana Islands), and.

What does foreign or US possession meaning Turbotax?

That is asking where you lived (state of residence) on December 31, 2015. If you did not live in the USA on that date, you would choose “Foreign or US Possession” (which is in the dropdown menu past Wyoming.) If you did live in a state on December 31, 2015, then choose the state you were living in on that date.

What does foreign us mean?

A foreign person includes a nonresident alien individual, foreign corporation, foreign partnership, foreign trust, foreign estate, and any other person that is not a U.S. person. … In most cases, the U.S. branch of a foreign corporation or partnership is treated as a foreign person.

What is considered a foreign partner?

A foreign partner is anyone who is not considered a U.S. person. This includes nonresident aliens, foreign corporations, foreign partnerships, and foreign trusts or estates. … The effectively connected taxable income is income that is effectively connected to a U.S. trade or business.

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What are two differences between a U.S. state and a US territory?

Much like states in the U.S., the territories also have their own governments and elect their own governors. Unlike states, the territories do not have a vote in Congress. … The territories also send delegates to political conventions, such as those to nominate presidential candidates.

Were you a resident of a US territory or possession?

An individual is generally considered a bona fide resident of a U.S. territory if he or she (1) is physically present in the territory for 183 days during the taxable year, (2) does not have a tax home outside the territory during the tax year, and (3) does not have a closer connection to the U.S. or a foreign country.

Why do I have a foreign tax credit?

The foreign tax credit is a tax break provided by the government to reduce the tax liability of certain taxpayers. The foreign tax credit applies to taxpayers who pay tax on their foreign investment income to a foreign government.

How do I claim my foreign withholding tax back?

File Form 1116, Foreign Tax Credit, to claim the foreign tax credit if you are an individual, estate or trust, and you paid or accrued certain foreign taxes to a foreign country or U.S. possession.

Are US territories considered foreign?

The practical effect of this definition is that U.S. territories and possessions are deemed foreign for Title 26 purposes. Thus, a financial account in a U.S. territory or possession is deemed a foreign account and must be reported on Form 8938, a fact confirmed by the regulations governing Form 8938.

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Who is foreign?

of, relating to, or derived from another country or nation; not native: foreign cars. of or relating to contact or dealings with other countries; connected with foreign affairs. external to one’s own country or nation: a foreign country. carried on abroad, or with other countries: foreign trade.

What does foreign resident mean?

Included in this definition are U.S. individuals living abroad for one year or more who are not employed by the U.S. government, foreigners residing in the United States for less than one year, and foreign affiliates of U.S. companies.

Is a Green Card holder a foreign person?

In contrast, a Green Card holder is an immigrant who has permission to live and work in the United States. By definition, a Green Card holder would be a foreign national or foreign citizen, not a US national.