Below is an overview that explains U.S. sales taxes, Arkansas property taxes, completing a W-4 form for payroll taxes, and how and when to file annual tax returns if you are a foreign national.
- Sales Taxes: Sales taxes are taxes charged on the sale of goods and services in the United States. The rate of sales tax varies depending on the state and can range from 0% to over 10%. Sales tax is usually collected by the seller and remitted to the state. However, some states may require individuals to pay use tax on items they purchase outside the state but use within the state.
- Property Taxes: Property taxes are taxes levied on the value of real estate, including land and buildings. In Arkansas, property taxes are based on the assessed value of the property and the tax rate in the county where the property is located. Property taxes are usually paid annually and can be paid directly to the county assessor’s office or through an escrow account with a mortgage lender. Visit the Arkansas Property Tax Center linked here.
- Completing a W-4 form for Payroll Taxes: A W-4 form is used by employers to withhold the appropriate amount of federal income tax from an employee’s paycheck. To complete a W-4 form, a foreign national should provide their name, address, social security number, marital status, and the number of allowances they are claiming. The number of allowances claimed should reflect the employee’s tax situation, such as dependents, deductions, and credits. Read more on this government website.
- Filing Annual Tax Returns: Foreign nationals who earn income in the United States may be required to file an annual tax return with the Internal Revenue Service. The deadline to file a tax return is typically April 15th of the year following the tax year. To file a tax return, a foreign national must first determine their tax residency status, which is based on the substantial presence test or a determination of whether they meet the requirements of a nonresident alien. Foreign nationals may be able to use tax software or hire a tax professional to assist with preparing and filing their tax return.
It’s worth noting that tax laws and regulations can be complex and may vary based on individual circumstances. It’s advisable for foreign nationals to seek guidance from a tax professional or the Internal Revenue Service for specific questions or concerns regarding taxes in the United States.