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Search in: Search Results Search Send an email Shift Shortcut List keyboard shortcuts Sidebar Toggle Slide Text Learn More To watch this video, use the preview feature in Storyline 360, upload your published output to a server, publish to Review 360, or switch to static video quality. Streaming video is unavailable for local playback. SUBMIT Submit SUBMIT ALL Terms audio camera moved down camera moved left camera moved right camera moved up %count% of %total% %count% of %total% visited hotspot Use the w, a, s, and d keys to move around the 360 degree image. Press the tab key to jump to interactive markers and hotspots. 360 degree image interaction free exploration mode guided tour mode next previous label marker pause audio pause video play audio play video progress progress %total% item %total% items video video volume Switch zoom modes Audio Transcript Autoscroll Notes Show timestamps Resume autoscroll Select track Transcripts Zoom to fit Continue <Document xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"> <Content> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="0" TrailingMargin="0" FirstLineMargin="0" Justification="Left" DefaultTabStop="48" ListLevel="0" LineSpacingRule="Single" LineSpacing="20" SpacingBefore="6" SpacingAfter="0"> <ListStyle ListType="None" ListTypeFormat="Parentheses" Start="0" Color="#000000,00" Size="100" BulletFont="Arial" /> </Style> <Span Text="As a global mobility services professional, it’s necessary for you to understand the U.S. taxation of foreign citizens and be able to identify and advise your clients on the consequences of living and working in the United States."> <Style FontFamily="Arial" FontSize="9" FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" UnderlineStyle="Normal" ForegroundColor="#000000" BackgroundColor="#000000,00" UnderlineColor="#000000,00" Elevation="Normal" Spacing="0" IgnoreKerningTable="False" DisplayCase="AsIs" LanguageId="0" LinkColor="#0000FF"> <Shadow Offset="0x0" Color="#FFFFFF,00" /> </Style> </Span> </Block> </Content> </Document> <Document xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:xsd="http://www.w3.org/2001/XMLSchema"> <Content> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="0" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Multiple" LineSpacing="21" SpacingBefore="0" SpacingAfter="8"> <ListStyle ListType="None" ListTypeFormat="Parentheses" BulletChar="•" BulletFont="Arial"> <BulletPicture Size="0x0" /> </ListStyle> </Style> <Span Text="Welcome to Part I Module 1 of GMS Tax Fundamentals on Demand. This module covers residency determination. Determining a foreign national’s residency is the first step in preparing the income tax return and provides a framework for taxation. At the end of this module, you will be able to describe the three categories of taxable individuals, define and appropriately employ the two tests to determine residency, explain exceptions to the substantial presence test, and identify exempt individuals. "> <Style FontSize="9" FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" ForegroundColor="dk1,00" LinkColor="dk1,00" /> </Span> </Block> </Content> </Document> <Document xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:xsd="http://www.w3.org/2001/XMLSchema"> <Content> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="0" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Multiple" LineSpacing="21" SpacingBefore="0" SpacingAfter="8"> <ListStyle ListType="None" ListTypeFormat="Parentheses" BulletChar="•" BulletFont="Arial"> <BulletPicture Size="0x0" /> </ListStyle> </Style> <Span Text="Welcome to the Amazing Tax Race! This season we will follow two foreign national teams who have just arrived in the U.S. to start a work assignment. Fabio and Ivana and Jackie and Jin. We will test their knowledge of the U.S. income tax system and see who can best answer the clues to get to the next destination. We are starting here in New York City and our final destination will be somewhere on the west coast. The first team to arrive at the final destination wins $1,000,000! 
"> <Style FontSize="9" FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" ForegroundColor="dk1,00" LinkColor="dk1,00" /> </Span> </Block> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="0" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Multiple" LineSpacing="21" SpacingBefore="0" SpacingAfter="8"> <ListStyle ListType="None" ListTypeFormat="Parentheses" BulletChar="•" BulletFont="Arial"> <BulletPicture Size="0x0" /> </ListStyle> </Style> <Span Text="So let’s get started with learning about the U.S. tax system. As some of you may already know there are three categories of taxable foreign nationals - resident, nonresident and dual status.
"> <Style FontSize="9" FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" ForegroundColor="dk1,00" LinkColor="dk1,00" /> </Span> </Block> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="0" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Multiple" LineSpacing="21" SpacingBefore="0" SpacingAfter="8"> <ListStyle ListType="None" ListTypeFormat="Parentheses" BulletChar="•" BulletFont="Arial"> <BulletPicture Size="0x0" /> </ListStyle> </Style> <Span Text=" A foreign national’s residency status affects how much of his income is subject to U.S. tax and what deductions are available. It also impacts an individual’s tax rates, filing status, credits, elections, and eligibility for certain treaty benefits. Clearly, an individual’s residency status has significant tax consequences, so how do we make this determination? "> <Style FontSize="9" FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" ForegroundColor="dk1,00" LinkColor="dk1,00" /> </Span> </Block> </Content> </Document> <Document xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:xsd="http://www.w3.org/2001/XMLSchema"> <Content> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="0" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Single" LineSpacing="20" SpacingBefore="0" SpacingAfter="0"> <ListStyle ListType="None" ListTypeFormat="Parentheses" BulletChar="•" BulletFont="Arial"> <BulletPicture Size="0x0" /> </ListStyle> </Style> <Span Text="Generally, a foreign national is treated as a nonresident unless he qualifies as a resident under one of two tests: 
"> <Style FontSize="9" FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" ForegroundColor="dk1,00" LinkColor="dk1,00" /> </Span> </Block> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="63" TrailingMargin="0" FirstLineMargin="36" Justification="Left" ListLevel="1" LineSpacingRule="Single" LineSpacing="20" SpacingBefore="0" SpacingAfter="0"> <ListStyle ListType="ListNumberedAsArabic" ListTypeFormat="Parentheses" BulletChar="•" BulletFont="Arial"> <BulletPicture Size="0x0" /> </ListStyle> </Style> <Span Text="The Lawful Permanent Resident Test, or 
"> <Style FontSize="9" FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" ForegroundColor="dk1,00" LinkColor="dk1,00" /> </Span> </Block> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="63" TrailingMargin="0" FirstLineMargin="36" Justification="Left" ListLevel="1" LineSpacingRule="Single" LineSpacing="20" SpacingBefore="0" SpacingAfter="8"> <ListStyle ListType="ListNumberedAsArabic" ListTypeFormat="Parentheses" BulletChar="•" BulletFont="Arial"> <BulletPicture Size="0x0" /> </ListStyle> </Style> <Span Text="The Substantial Presence Test. 
"> <Style FontSize="9" FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" ForegroundColor="dk1,00" LinkColor="dk1,00" /> </Span> </Block> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="0" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Single" LineSpacing="20" SpacingBefore="0" SpacingAfter="8"> <ListStyle ListType="None" ListTypeFormat="Parentheses" BulletChar="•" BulletFont="Arial"> <BulletPicture Size="0x0" /> </ListStyle> </Style> <Span Text="The Lawful Permanent Residency Test is pretty straightforward: Generally, a lawful permanent resident is someone who holds a valid green card. A green card holder is treated as a U.S. resident, regardless of whether he is physically present in the U.S. He will continue to be treated as a U.S. resident until his green card status under U.S. immigration law is officially revoked or abandoned. An individual who is a lawful permanent resident is required to file U.S. tax returns as long as he holds a valid green card, regardless of where he resides. This filing requirement does not end when a lawful permanent resident leaves the U.S. and establishes residency in another country, nor does it end when a green card expires. 
"> <Style FontSize="9" FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" ForegroundColor="dk1,00" LinkColor="dk1,00" /> </Span> </Block> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="0" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Single" LineSpacing="20" SpacingBefore="0" SpacingAfter="0"> <ListStyle ListType="None" ListTypeFormat="Parentheses" BulletChar="•" BulletFont="Arial"> <BulletPicture Size="0x0" /> </ListStyle> </Style> <Span Text="Unlike the Lawful Permanent Resident Test, the Substantial Presence Test focuses on an individual’s physical presence in the U.S. Under the Substantial Presence Test, an individual is considered a U.S. resident if: 
"> <Style FontSize="9" FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" ForegroundColor="dk1,00" LinkColor="dk1,00" /> </Span> </Block> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="13" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Single" LineSpacing="20" SpacingBefore="0" SpacingAfter="0"> <ListStyle ListType="Bullet" ListTypeFormat="Parentheses" BulletChar="•" BulletFont="Arial"> <BulletPicture Size="0x0" /> </ListStyle> </Style> <Span Text="He is present in the U.S. on at least 31 days during the calendar year; and 
"> <Style FontSize="9" FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" ForegroundColor="dk1,00" LinkColor="dk1,00" /> </Span> </Block> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="13" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Single" LineSpacing="20" SpacingBefore="0" SpacingAfter="0"> <ListStyle ListType="Bullet" ListTypeFormat="Parentheses" BulletChar="•" BulletFont="Arial"> <BulletPicture Size="0x0" /> </ListStyle> </Style> <Span Text="The sum of: 
"> <Style FontSize="9" FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" ForegroundColor="dk1,00" LinkColor="dk1,00" /> </Span> </Block> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="63" TrailingMargin="0" FirstLineMargin="36" Justification="Left" ListLevel="1" LineSpacingRule="Single" LineSpacing="20" SpacingBefore="0" SpacingAfter="0"> <ListStyle ListType="ListNumberAsLCLetter" ListTypeFormat="Parentheses" BulletChar="•" BulletFont="Arial"> <BulletPicture Size="0x0" /> </ListStyle> </Style> <Span Text="the number of days of U.S. presence during the current calendar year, plus 
"> <Style FontSize="9" FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" ForegroundColor="dk1,00" LinkColor="dk1,00" /> </Span> </Block> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="63" TrailingMargin="0" FirstLineMargin="36" Justification="Left" ListLevel="1" LineSpacingRule="Single" LineSpacing="20" SpacingBefore="0" SpacingAfter="0"> <ListStyle ListType="ListNumberAsLCLetter" ListTypeFormat="Parentheses" BulletChar="•" BulletFont="Arial"> <BulletPicture Size="0x0" /> </ListStyle> </Style> <Span Text="one-third of the U.S. days during the first preceding calendar year, plus 
"> <Style FontSize="9" FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" ForegroundColor="dk1,00" LinkColor="dk1,00" /> </Span> </Block> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="63" TrailingMargin="0" FirstLineMargin="36" Justification="Left" ListLevel="1" LineSpacingRule="Single" LineSpacing="20" SpacingBefore="0" SpacingAfter="8"> <ListStyle ListType="ListNumberAsLCLetter" ListTypeFormat="Parentheses" BulletChar="•" BulletFont="Arial"> <BulletPicture Size="0x0" /> </ListStyle> </Style> <Span Text="one-sixth of the U.S. days during the second preceding calendar year, equals or exceeds 183 days. 
"> <Style FontSize="9" FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" ForegroundColor="dk1,00" LinkColor="dk1,00" /> </Span> </Block> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="0" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Single" LineSpacing="20" SpacingBefore="0" SpacingAfter="8"> <ListStyle ListType="None" ListTypeFormat="Parentheses" BulletChar="•" BulletFont="Arial"> <BulletPicture Size="0x0" /> </ListStyle> </Style> <Span Text="It is important to note that the Substantial Presence Test requires both 31 actual days in the current year AND 183 or more equivalent days from the current and prior two years. An individual is considered “present” in the U.S. on any day that he is physically present in the U.S. at any time during such day. 
"> <Style FontSize="9" FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" ForegroundColor="dk1,00" LinkColor="dk1,00" /> </Span> </Block> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="0" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Single" LineSpacing="20" SpacingBefore="0" SpacingAfter="8"> <ListStyle ListType="None" ListTypeFormat="Parentheses" BulletChar="•" BulletFont="Arial"> <BulletPicture Size="0x0" /> </ListStyle> </Style> <Span Text="Now that we know the general rule, let’s look at the two main exceptions to the substantial presence test. "> <Style FontSize="9" FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" ForegroundColor="dk1,00" LinkColor="dk1,00" /> </Span> </Block> </Content> </Document> <Document xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:xsd="http://www.w3.org/2001/XMLSchema"> <Content> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="0" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Multiple" LineSpacing="21" SpacingBefore="0" SpacingAfter="8"> <ListStyle ListType="None" ListTypeFormat="Parentheses" BulletFont="Arial" /> </Style> <Span Text="Well now that we have some background on residency it’s time for our first task! You will each need to answer 5 questions. But be careful, if you get one wrong your partner gets a pie in the face! Let’s see which team gets the most questions right."> <Style FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" /> </Span> </Block> </Content> </Document> <Document xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:xsd="http://www.w3.org/2001/XMLSchema"> <Content> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="0" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Multiple" LineSpacing="21" SpacingBefore="0" SpacingAfter="8"> <ListStyle ListType="None" ListTypeFormat="Parentheses" BulletFont="Arial" /> </Style> <Span Text="If learner gets less than 3 correct out of 5 questions:"> <Style FontIsBold="True" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" /> </Span> <Span Text=" Oh no – looks like you didn’t do so well this time. Let’s find out how the teams have fared in this round.
"> <Style FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" /> </Span> </Block> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="0" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Multiple" LineSpacing="21" SpacingBefore="0" SpacingAfter="8"> <ListStyle ListType="None" ListTypeFormat="Parentheses" BulletFont="Arial" /> </Style> <Span Text="If learner gets 3 or more correct out of 5 questions: "> <Style FontIsBold="True" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" /> </Span> <Span Text="Great job! Let’s find out how the teams have fared in this round."> <Style FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" /> </Span> </Block> </Content> </Document> <Document xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:xsd="http://www.w3.org/2001/XMLSchema"> <Content> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="0" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Multiple" LineSpacing="21" SpacingBefore="0" SpacingAfter="8"> <ListStyle ListType="None" ListTypeFormat="Parentheses" BulletFont="Arial" /> </Style> <Span Text="Here is our scoreboard. Jackie and Jin are the winners in our first round! We’ll see them at the next location in two days!"> <Style FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" /> </Span> </Block> </Content> </Document> <Document xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:xsd="http://www.w3.org/2001/XMLSchema"> <Content> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="0" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Multiple" LineSpacing="21" SpacingBefore="0" SpacingAfter="8"> <ListStyle ListType="None" ListTypeFormat="Parentheses" BulletFont="Arial" /> </Style> <Span Text="Let’s briefly review what we learned in this module. Take a few moments to review the bullets on the screen."> <Style FontIsBold="False" FontIsItalic="False" FontIsUnderline="False" FontIsStrikeout="False" /> </Span> </Block> </Content> </Document> <Document xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"> <Content> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="0" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Multiple" LineSpacing="21" SpacingBefore="0" SpacingAfter="8"> <ListStyle ListType="None" ListTypeFormat="Parentheses" BulletFont="Arial" /> </Style> <Span Text="Congratulations!
" /> </Block> <Block> <Style FlowDirection="LeftToRight" LeadingMargin="0" TrailingMargin="0" FirstLineMargin="0" Justification="Left" LineSpacingRule="Multiple" LineSpacing="21" SpacingBefore="0" SpacingAfter="8"> <ListStyle ListType="None" ListTypeFormat="Parentheses" BulletFont="Arial" /> </Style> <Span Text="You have completed Module I - Residency Determination." /> </Block> </Content> </Document> A foreign national who is a full-year U.S. resident is treated in much the same manner as a U.S. citizen from a U.S. tax perspective. Module 1: Residency Determination (Slides 4, ) Module 2: Residency Start and End Date (Slides 3, 5) Module 3: Module 3: U.S. Residency Elections (Slides 3, 5) Module 4: Types of Income and Sourcing (Slide 1) Module 5: Source of Income Rules, Deductions & Filing Status (Slide 3) For a married couple to file a joint tax return, both spouses must be either U.S. citizens or residents for the entire tax year. Where a spouse does not qualify as a full year resident, two elections are available that may enable him or her to be treated as a U.S. resident for the entire year. If an election is made, both spouses’ worldwide income earned during the tax year is taxable in the United States, including income received prior to their move to the United States or after their departure from the United States. A spouse making either election may not claim nonresident status under a treaty. Module 3: Residency Determination (Slides 1, 2, 3, 5, 7, 10, 11) A qualifying foreign individual for the purposes of § 7701(b)(4) is one who: • Was not a U.S. resident during the preceding year; • Is a U.S. resident under the substantial presence test in the following calendar year; • Is present in the United States for at least 31 consecutive days during the election year; and • Is present in the United States for at least 75 percent of the days during the period beginning with the first day of the 31 consecutive day period and ending with the last day of the election year (December 31st). In applying this 75 percent test (but not the 31 consecutive day test), an individual may treat up to five days of absence from the United States as days of U.S. presence.[2] Module 1: Residency Determination (Slide 5) The substantial presence test focuses on an individual’s physical presence in the U.S. Under this test, an individual is considered a U.S. resident if: — He is present in the U.S. on at least 31 days during the calendar year; and — The sum of: a) the number of days of U.S. presence during the current calendar year, plus b) one-third of the U.S. days during the first preceding calendar year, plus c) one-sixth of the U.S. days during the second preceding calendar year, equals or exceeds 183 days. Module 1: Residency Determination (Slides 1, 3, 4) Module 2: Residency Start and End Date (Slides 3, 5) Generally, a lawful permanent resident is someone who holds a valid green card. A green card holder is treated as a U.S. resident, regardless of whether he is physically present in the U.S. Module 1: Residency Determination (Slides 1, 3, 4) Module 2: Residency Start and End Date (Slide 3)