Skip to main content

Nixon Peabody LLP

  • People
  • Capabilities
  • Insights
  • About
Trending Topics
    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    Practices

    View All

    • Affordable Housing
    • Community Development Finance
    • Corporate & Finance
    • Cybersecurity & Privacy
    • Entertainment & Media
    • Environmental
    • Franchising & Distribution
    • Government Investigations & White Collar Defense
    • Healthcare
    • Intellectual Property
    • International Services
    • Labor, Employment, and Benefits
    • Litigation
    • Private Wealth & Advisory
    • Project Finance
    • Public Finance
    • Real Estate
    • Regulatory & Government Relations
    Industries

    View All

    • Aviation
    • Cannabis
    • Consumer
    • Energy
    • Financial Services
    • Healthcare
    • Higher Education
    • Infrastructure
    • Manufacturing
    • Nonprofit Organizations
    • Real Estate
    • Sports & Stadiums
    • Technology
    Value-Added Services

    View All

    • Alternative Fee Arrangements

      Developing innovative pricing structures and alternative fee agreement models that deliver additional value for our clients.

    • Continuing Education

      Advancing professional knowledge and offering credits for attorneys, staff and other professionals.

    • Crisis Advisory

      Helping clients respond correctly when a crisis occurs.

    • DEI Strategic Services

      Providing our clients with legal, strategic, and practical advice to make transformational changes in their organizations.

    • eDiscovery

      Leveraging law and technology to deliver sound solutions.

    • Environmental, Social, and Governance (ESG)

      We help clients create positive return on investments in people, products, and the planet.

    • Global Services

      Delivering seamless service through partnerships across the globe.

    • Innovation

      Leveraging leading-edge technology to guide change and create seamless, collaborative experiences for clients and attorneys.

    • IPED

      Industry-leading conferences focused on affordable housing, tax credits, and more.

    • Legal Project Management

      Providing actionable information to support strategic decision-making.

    • Legally Green

      Teaming with clients to advance sustainable projects, mitigate the effects of climate change, and protect our planet.

    • Nixon Peabody Trust Company

      Offering a range of investment management and fiduciary services.

    • NP Capital Connector

      Bringing together companies and investors for tomorrow’s new deals.

    • NP Second Opinion

      Offering fresh insights on cases that are delayed, over budget, or off-target from the desired resolution.

    • NP Trial

      Courtroom-ready lawyers who can resolve disputes early on clients’ terms or prevail at trial before a judge or jury.

    • Social Impact

      Creating positive impact in our communities through increasing equity, access, and opportunity.

    • Women in Dealmaking

      We provide strategic counsel on complex corporate transactions and unite dynamic women in the dealmaking arena.

    1. Home
    2. Insights
    3. Articles
    4. Does non U S income need to be reported on a U S income tax return

      Articles

    Article

    Does non U S income need to be reported on a U S income tax return

    Feb 9, 2021

    LinkedInX (Twitter)EmailCopy URL

    Income Tax Department

    Non-U.S. income must be reported on your U.S. income tax return.

    Yes, you have to report your non-U.S. income on your U.S. income tax return, Form 1040. All United States citizens and green card holders are taxed on their worldwide income regardless of in which country they are residing or in which country the income is earned.

    The fact that the same income may also be subject to taxation in another country does not eliminate the obligation to report it on the U.S. income tax return. Of course, the taxpayer may receive a foreign tax credit for taxes paid to another jurisdiction, which may offset some of the burden of the double taxation. Be aware that the Foreign Account Tax Compliance Act (FATCA) requires foreign financial institutions to report on the foreign assets of their U.S. account holders to the Internal Revenue Service (IRS). Therefore, failure to properly include interest, dividends, capital gains, etc. on your U.S. income tax return from foreign accounts could lead to a Pandora's Box of scrutiny and audit issues, not to mention penalty assessments. Remember that in addition to reporting non-U.S. income on your U.S. tax return, there are other foreign reporting obligations (such as FinCEN Report 114 and Form 8938) with their own filing requirements that must be adhered to. The reporting of worldwide income on the U.S. income tax return is not new and has been part of the U.S. tax law for many years. However, requirements surrounding the reporting have gotten increasingly more complex.

    If you have a foreign financial account(s) and/or foreign assets, do yourself a favor and consult with a tax professional to help navigate through the various tax filing obligations.

    Practices

    Private Wealth & Advisory
    The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact your regular Nixon Peabody LLP representative. This material may be considered advertising under certain rules of professional conduct.

    Subscribe to stay informed of the latest legal news, alerts, and business trends.Subscribe

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    • Cookie Preferences
    • Privacy Policy
    • Terms of Use
    • Accessibility Statement
    • Statement of Client Rights
    • Purchase Order Terms & Conditions
    • Nixon Peabody International LLC
    • PAL
    © 2025 Nixon Peabody. All rights reserved