Standard Deduction :3 Types of Nonresident Aliens Can Claim It ?

Standard deduction is substantially increased after passing of Tax Cuts & Jobs and is a major deduction for US taxpayers who do not want to claim itemized deduction while filing taxes.However, the standard deduction is not available for nonresident aliens. But , to your surprise , nonresident aliens  are still allowed to claim standard deduction in three exceptional circumstances.

FAQs on Penalty for Underpayment of Estimated Tax

Estimated tax payment is required to be deposited by the taxpayer generally if the tax payable after reduction of tax credits and withholding tax is $1000 or more. Internal Revenue Code §6654 is regarding the failure by individual to pay proper estimated tax. It provides that a person will have to pay additional dollar (basically interest)  in case he fails to pay estimated tax in time. So , you may regard that additional payments on account of your failure to pay the estimated tax as a penalty !Read More »FAQs on Penalty for Underpayment of Estimated Tax