Source of Income
United States persons (including citizens, residents, and U.S. corporations) are generally subject to U.S. federal income tax on their worldwide income. Foreign persons (i.e., persons who are not U.S. persons) are subject to U.S. federal income tax only on income from a U.S. business and certain income from United States sources. Source of income is determined based on the type of income. The source of compensation income is the place where the services giving rise to the income were performed. The source of certain income, such as dividends and interest, is based on location of the residence of the payor. The source of income from property is based on the location where the property is used. Significant additional rules apply.
Read more about this topic: Gross Income
Famous quotes containing the words source of, source and/or income:
“You have never by a word or a deed given me one moment’s uneasiness; on the contrary I have felt perpetual gratitude to heaven for having given me, in you, a source of so much pure and unmixed happiness.”
—Thomas Jefferson (1743–1826)
“There often seems to be a playfulness to wise people, as if either their equanimity has as its source this playfulness or the playfulness flows from the equanimity; and they can persuade other people who are in a state of agitation to calm down and manage a smile.”
—Edward Hoagland (b. 1932)
“The question for the country now is how to secure a more equal distribution of property among the people. There can be no republican institutions with vast masses of property permanently in a few hands, and large masses of voters without property.... Let no man get by inheritance, or by will, more than will produce at four per cent interest an income ... of fifteen thousand dollars] per year, or an estate of five hundred thousand dollars.”
—Rutherford Birchard Hayes (1822–1893)