Stuck wrote:

- quote -

Almost certainly -- her income is earned while in the US.
If her permanent residency country's provisions are anything
like the ones I'm familiar with, she can claim a "foreign
tax credit" on her income tax return in that country for
the tax due to to the US, and her income is also reportable
to THAT country.

Proper allocation of treaty provisions may allow her
Social Security Tax to be paid to her current country
of permanent residence, but I'm not entirely sure about
that.

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Stuck wrote:

- quote -

A G1 Visa is issued to a non-citizen who is employed in the
US by an international organization. US tax law exempts the
wages of this type of employee. Here is an excerpt from IRS
Pub 519 US Tax Guide for Aliens:

Employees of international organizations.
If you work for an international organization in the United
States and you are not a U.S. citizen or you are a U.S.
citizen but are also a citizen of the Philippines), your
salary from that organization is exempt from U.S. tax.
However, see Aliens who keep immigrant status, later, for a
special rule that may affect your qualifying for this
exemption. An international organization is an organization
designated by the President of the United States through
Executive Order to qualify for the privileges, exemptions,
and immunities provided in the International Organizations
Immunities Act. You should find out if you have been made
known to, and have been accepted by, the Secretary of State
as an officer or an employee of that organization, or if you
have been designated by the Secretary of State, before
formal notification and acceptance, as a prospective officer
or employee. If you are claiming exemption, you should know
the number of the Executive Order covering the international
organization and should have some written evidence of your
acceptance or designation by the Secretary of State. The
exemption is denied when, because the Secretary of State
determines your presence in the United States is no longer
desirable, you leave the United States (or after a
reasonable time allowed for leaving the United States). The
exemption is also denied when a foreign country does not
allow similar exemptions to U.S. citizens. Then the
Secretary of State can withdraw the privileges, exemptions,
and immunities from the nationals of that foreign country.

You can find IRS Pub 519 at:
http://www.irs.gov/publications/p519/index.html

--
Alan
http://taxtopics.net

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My sister, who is NOT an US citizen, married a diplomat who
is assigned to the United Nations in New York. She was
granted a G1 visa, which allows her to work in the US.

She was also given a Social Security number. She is not
planning to live permanently in the US and, as soon as her
husband's appointment is completed, she will leave the
country.

She was offered a job recently and she will probably earn
over $50,000 during 2004.

Question:

Considering that she is not a citizen and her residency in
the country is not permanent, does she have to pay income
taxes?

Thank you!

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